1.

Distinguish between current account and capital account of Balance of payment account.

Answer»

BOP account is a statement of all economic transactions that take place between a nation and the rest of the world during a given period. 

BOP account comprises current account and capital account. 

(i) Current Account : is the account which records imports and exports of goods and services and unilateral transfers. 

(ii) Capital Account : is that account which records capital transactions such as foreign investments, loans, banking other capital and monetary movements.



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