The Balance of Payments (BoP) is a summary of all economic transactions between a country and the rest of the world over a period of time. It is divided into two main accounts: the Current Account and the Capital Account (sometimes including a Financial Account). - The Current Account records trade in goods (visibles), services (invisibles), income (investment income, compensation of employees), and current transfers (remittances, grants). "Invisibles" refers to services, income, and current transfers. - The Capital Account (or Capital and Financial Account combined) records capital transfers and transactions involving financial assets and liabilities. This includes Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), loans (commercial borrowing, external assistance), and banking capital.