The balance of payment records the transactions between one country's people and companies with that of the rest of the world. The balance of payment is made up of a country's capital account and current account. The Bottom Line Both the current account and capital account of a nation's f...
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Acurrentaccountisasumofthreethings-netfactorincome,balanceoftradeandnettransferpayments.Netfactorincomeisnothingbuttheincomewhichcomesfromthesourceslikeinterestanddividends.Ontheotherhand,thebalanceoftradedenotesthedifferenceintheexportsofacountryanditsimports.Nettransferofpaymentscouldberelatedtotheforeignaidwhichisrece...
In quite a few occasions, arguments on current account or capital account are found one-sided. Some economists assert that current account of each nation depends on their international competitiveness. Other economists claim that savings investment balance makes current account surplus or deficit. Some...
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The balance of payments consists of two primary components: thecurrent accountand the capital account. Sometimes, the capital account is split into two sections: one is still called the capital account, and the other is called the financial account. The capital account covers specific types of as...
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