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Answer» Difference between current account and capital account of BOP- | Sl. No. | Current Account | Capital Account | | i | It is the account which records exports and imports of goods, services and unilateral transfers. | It records capital transactions such as loan and investment between a country and rest of the world. | | ii | Items of current account do not cause change in the assets and liability status of the residents of a country & its government. | Items of capital account cause change in the assets and liability status of the residents of a country & its government. | | iii | The main components of current account are export and import of goods, services and unilateral transfers. | The main components of capital account are private capital transaction, official capital transaction and baking capital transaction etc. |
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