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