Different forms of capital account transactions

Different forms of capital account transactions:

A) Private Transactions: There are transactions which affect the liabilities and assets of individuals.

B) Official Transactions: Transactions affecting liabilities and assets by the government and its agencies.

C) Portfolio Investment: This is the acquisition of an asset which does not give the purchaser control over asset.

D) Direct Investment: It is the action of purchasing an asset and at similar time acquiring control of it.

The total value of balance of direct and portfolio investment is termed as balanced on Capital Account.

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