Current And Capital Account


 
 
Concept Explanation
 

Current And Capital Account

Current Account:

All transactions related to goods, services and unrequited transfers constitute current account. Flow of item pertaining to specific period of time Visible items include goods Invisible items include services.

Capital Account:

All transactions indicating changes in stock magnitudes concerning capital receipts and payments constitute capital account. It relates to

  • Change in stock of gold
  • Change in reserve of foreign
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