BOP always balances. explain

Balance of payment has two accounts one is current account and another is capital account. It  always happen that when one account is in surplus then another account is in deficit by the same amount such that the sum of these two account is always zero. Thus, in accounting sense, the overall BOP will always be in balance or in equilibrium. For example, if a country is facing a Current Account deficit, then it may finance the deficit by selling its assets or by borrowing from abroad (Surplus in Capital Account).


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as it has autonomous and accomodating as its components which balances it each time when it is favourable or infavourable

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