1.

Distinguish between current account and capital account of the balance of payments account on the basis of its components.

Answer»
Current AccountCapital Account
It includes all the receipts & expenditure which are regular in nature It includes all the receipts & expenditure which are irregular in nature & given in lump sum.
It includes all the receipts which does not reduce assets & all the expenditures which does not add any assets. It includes all the receipts which reduce assets & all the expenditures which add any assets. 
It includes all the receipts which does not increase liability & all the expenditures which does not reduce any liability. It includes all the receipts which increase liability & all the expenditures which reduce liability.


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