balance of payments  a record of a country’s trade in goods, services, and financial assets with the rest of the world
balance of trade  the balance on the merchandise account in the U.S. balance of payments
capital account  the record in the balance of payments of the flow of financial assets into and out of a country
current account  the sum of the merchandise, services, investment income, and unilateral transfers accounts in the balance of payments
deficit  in a balance of payments account, the amount by which debits exceed credits
double-entry bookkeeping  a system of accounting in which every transaction is recorded in at least two accounts and in which the debit total must equal the credit total for the transaction as a whole
exchange rate  the price of one country’s money in terms of another country’s money
foreign exchange  foreign currency and bank deposits that are denominated in foreign money
foreign exchange market  a global market in which people trade one currency for another