Question

Give two differences between Current Account and Capital Account of Balance of Payment Account.

Answer 1

Current Account	Capital Account
(i) It records transactions relating to export and import of goods and services, unilateral transfers and international incomes.	(i) It records transactions relating to the change in assets – both financial and physical.
(ii) These do not change the assets and future liabilities of the country.	(ii) These increases or decreases the assets and future liabilities of the country.
(iii) It is the value of exports minus value of imports, adjusted for international incomes and net transfers.	(iii) It is the record of short term and long term capital transactions, both private and official.