Final answer:
Transactions not included in the balance of payments are those not involving an actual transfer of funds affecting a country's financial position and non-produced, non-financial asset exchanges. Unilateral transfers, such as assistance or charity abroad, are included.
Step-by-step explanation:
Transactions that would not be counted as a balance of payments (BOP) transaction are those that do not involve an actual transfer of funds or financial claim that affects the financial position of a country with the rest of the world. For instance, domestic transactions between residents within the same country, or the exchange of non-produced, non-financial assets (such as natural resources that a government has not yet proven the right to work on) are not recorded in the BOP.
The BOP records all international transactions of a country with the rest of the world, which include unilateral transfers—one-way payments with nothing received in return. Economic or military assistance, charity spending abroad, and money sent overseas by individuals such as immigrants are examples of unilateral transfers and are recorded as either imports or exports because they reflect a stream of payments leaving or entering the country.