--%>
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 : What is Flexible exchange rate system

    Flexible (or floating) exchange rate system: This is a system in which exchange rate is found out by forces of demand and supply of the foreign currencies concerned in the foreign exchange market. There is no official interference in the foreign excha

    		•
  • Q : International trade product life cycle

    I NEED TO UNDERSTAND MORE ABOUT PRODUCTION POSSIBILITY FRONTIER

    		•
  • Q : What is Fixed exchange rate system

    Fixed exchange rate system (or pegged exchange rate system): This is a system in which exchange rate of a currency is fixed by government. This system makes sure stability in the foreign trade and capital movement.

    		•
  • Q : Wars that have an impact on Global

    The professor wants to narrow it down to one or two wars that have affect global economies.

    		•
  • Q : Define induced investment Induced

    Induced investment: It is a type of investment that is of profit motive in nature.

    		•
  • Q : Define flexible exchange rate Flexible

    Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.

    		•
  • Q : Components of capital account of

    Components of capital account of balance of payment: A) Borrowing and lending to and from abroad.B) Change in foreign exchange reserves C) Investment to and from abroad.

    		•
  • Q : Must home production be defended to

    Examining US–Canadian imports-exports and analyzing a call to protect the US lumber business.

    		•
  • Q : Problem on International trade economy

    If the Chinese economy could create all goods with fewer resources per unit than are needed in US, the citizens of China would: (i) Encompass a comparative advantage in the whole thing. (ii) Be self-sufficient since there would be no potential profits from trade. (iii

    		•
  • Q : Indian economic what are the key

    what are the key callenges to indian economic development

    		•