Balance of Payments:

The balance of payments is a statement that summarizes all economic transactions made between the residents of a country and the rest of the world during a given period. It includes both visible and invisible transactions of goods, services, and capital.

Current Account:

The current account includes all visible and invisible transactions of goods and services. It includes exports and imports of goods, income received from investments, and payments made for services like tourism, transportation, and education.

Capital Account:

The capital account includes all transactions of capital. It includes the flow of funds for investments, loans, and other financial assets. It also includes transactions of non-financial assets like patents, copyrights, and trademarks.

Equilibrium in Balance of Payments:

Equilibrium in balance of payments means that there is no deficit or surplus in the current and capital accounts combined. In other words, the sum total of the current account and capital account should be zero.

Option B:

In option B, the correct answer is "current, capital." This means that the sum total of the current account and capital account should be zero for equilibrium in balance of payments.

Explanation:

The current account and capital account are the two major components of the balance of payments. The current account measures the flow of goods and services, while the capital account measures the flow of capital. For equilibrium in balance of payments, the sum total of these two accounts should be zero.

If there is a deficit in the current account, it means that a country is importing more goods and services than it is exporting. This leads to a surplus in the capital account as the country borrows funds to finance its imports. On the other hand, if there is a surplus in the current account, it means that a country is exporting more goods and services than it is importing. This leads to a deficit in the capital account as the country invests its surplus funds abroad.

Therefore, for equilibrium in balance of payments, the sum total of the current account and capital account should be zero.