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Balance of Payments

Current Account

current account = trade balance + services + transfers

Trade Balance

Services

Transfers

Capital Account

Statistical Discrepancy

Official Reserve Transactions

You must first understand some accounting.  The current account is defined as net exports plus services plus transfers.  The capital account is net purchases by foreigners of domestic assets.  The remaining items are the statistical discrepancy and official reserve transactions.  The net of all these things must be zero.

References

Balance of Payments, Herbert Stein, Concise Encyclopedia of Economics.
Balance of Payments, Wikipedia.

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