Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Ask your questions and receive accurate answers from professionals with extensive experience in various fields on our platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.
Sagot :
Current account and Capital account are the two major components of a statement that summarizes all debit and credit transactions of one country with the rest of the world.
What is Capital account?
- The capital account is a tool used in macroeconomics and international finance to track the net flow of investment transactions into an economy.
- It is one of the balance of payments' two main elements, together with the current account. The capital account reflects the net change in ownership of national assets, whereas the current account reflects a country's net revenue.
- A positive balance on the capital account indicates that money is entering the nation, but unlike a positive balance on the current account, the inflows actually represent borrowings or asset sales rather than payments for labor.
- A deficit in the capital account indicates that money is leaving the country and that the country is acquiring more foreign assets.
To know more about Capital account with the given link
https://brainly.com/question/13275642
#SPJ4
We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.
