--%>
Assignment Help - homework help

Current account and capital account-Balance of payment

Differentiate among current account and capital account of balance of payment account. State any two transactions of capital account.

Answer:

Current account: It is that account that records exports and imports of services and goods and unilateral transfers.

Capital account: It is that account that records capital transactions like foreign investments, loans, capital, rupee debt service, banking, and additional capital and monetary movements.

   Related Questions in International Economics

  • Q : International monetary system safeguard

    safeguard against the crisis of confidence in system explain

    		•
  • Q : State the two sources of demand of

    State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.

    		•
  • Q : Need of foreign currency Why foreign

    Why foreign currency or exchange is required? Answer: a) To buy services and goods from other countries. b) To send a gift abroad. c) To buy financial assets in a specific country and d) To contem

    		•
  • Q : Wars that have an impact on Global

    I need an outline paper and a 15 page research paper double space on this topic. I have to provide at least 5 cited reports, but not limited to just 5 cites. Professor made comment below. The topic is too broad and I suggest that you focus on a war for which you can get enough economic data to

    		•
  • Q : Balance of trade Which transactions

    Which transactions find out the balance of trade? When the balance of trade is in surplus?

    		•
  • Q : Influence of demand in exchange rate If

    If exchange rate of foreign currency downs or falls, its demand rises. Describe how? Answer: If exchange rate falls, an import become cheaper, demand for imports in

    		•
  • Q : Who was 1970 Nobel Laureate in Economics

    Who was 1970 Nobel Laureate in Economics?

    		•
  • Q : Who won the Nobel Prize for Economics

    Who won the Nobel Prize for Economics in 1997?

    		•
  • Q : Problem related to direct foreign

    China is a huge manufacturer of technology of telephone devices. It has lately become a member of W.T.O. that means it can sell its products in other member countries such as India. Assume that it does export a big number of telephone instruments to India:

  • Q : How is the exchange rate influenced by

    ‘The country has a floating exchange rate and its inflation rate is much higher than its trading partners. Why we would suppose the country’s exchange rate to deflate?’

    		•