--%>
Assignment Help - homework help

Current account and capital account-Balance of payment

Differentiate among current account and capital account of balance of payment account. State any two transactions of capital account.

Answer:

Current account: It is that account that records exports and imports of services and goods and unilateral transfers.

Capital account: It is that account that records capital transactions like foreign investments, loans, capital, rupee debt service, banking, and additional capital and monetary movements.

   Related Questions in International Economics

  • Q : What is managed floating exchange rate

    Managed floating exchange rate: This is a system in which the central bank or Government permits the exchange rate to identify market forces although they take decisions to intervene whenever they feel it suitable.

    		•
  • Q : Define induced investment Induced

    Induced investment: It is a type of investment that is of profit motive in nature.

    		•
  • Q : Calculating value of imports Calculate

    Calculate the value of imports, if the net imports are of Rs 160 crores and the value of exports are of Rs 400 crores.

    		•
  • Q : International portfolio investments 5.

    5. What are the factors responsible for the recent surge in international portfolio investment?

    		•
  • Q : What is BOP The balance of payment

    The balance of payment account (BOP) account is the statement of each and every economic transaction which takes place between a nation and rest of the world throughout a particular period. BOP account generally comprises of (a) Current account and (b

    		•
  • Q : Problem on completely employed economy

    In a completely employed economy, the higher the yield of capital goods, and the bigger its: (1) Present living standards. (2) Present output of consumer goods. (3) Growth of capacity for the future production. (4) Rates of inflation and unemployment.

    		•
  • Q : Define balance of payment or BOP

    Balance of payment: It is a systematic record of each and every economic transaction of a country with the rest of world in an accounting year.

    		•
  • Q : Problem on International trade economy

    If the Chinese economy could create all goods with fewer resources per unit than are needed in US, the citizens of China would: (i) Encompass a comparative advantage in the whole thing. (ii) Be self-sufficient since there would be no potential profits from trade. (iii

    		•
  • Q : Describe balance of payment Accounts

    Balance of payment Accounts: It is the systematic record of all economic transactions among the residents of a country and rest of the world in a specified period (1-year) of time.

    		•
  • Q : Manegment . In 2007 and 2008 Boeing ran

    . In 2007 and 2008 Boeing ran into several publicized issues with regard to its management of a globally dispersed supply chain. What are the causes of these problems? What can a company such as Boeing do to make sure such problems do not occur in the future?

    		•