The Balance of Payments (BOP) is a financial statement that summarizes a country's economic transactions with the rest of the world over a specific period, usually a year. It includes trade in goods and services, investment income, and financial transfers. The BOP is divided into two main accounts: the current account, which records trade and income, and the capital account, which tracks financial transactions. A positive BOP indicates that a country is exporting more than it is importing, while a negative BOP suggests the opposite. Policymakers and economists use the BOP to assess economic stability and make informed decisions regarding monetary policy and trade agreements.