Detailed Explanation:

✅ Statement 1 – Correct: Balance of Payments (BoP) is a systematic record of all economic transactions between residents of a country and the rest of the world during a given period, typically a year, including goods, services, capital flows, and transfers.

❌ Statement 2 – Incorrect: This describes only the Balance of Trade (visible trade), not the comprehensive BoP which includes services, income, and capital accounts.

❌ Statement 3 – Incorrect: BoP covers transactions by all residents (individuals, firms, banks, government), not just government-to-government transactions.

❌ Statement 4 – Incorrect: Capital movements form only the capital account component of BoP; it also includes the current account (trade, services, income, transfers) and errors & omissions.