1.

Differentiate between Current Account and Capital Account of Balance of Payment.

Answer»
Current AccountCapital Account
(i) It records exports and imports of goods and services as well as unilateral transfers.(i) It records transactions of purchase and sale of foreign assets and liabilities.
(ii) It has a direct influence on the level of income of a country.(ii) It does not have a direct influence on the level of income of a country.
(iii) It includes all items of a flow nature so it is a flow concept.(iii) It includes all items expressing changes in stock, hence it is a stock concept.


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