Question

capital account of bop item includes​

Answer 1

Answer:

Capital Account. The capital account of BOP records all such transactions which relate to purchase and sale of foreign assets and foreign liabilities during a year. ... Capital account flows consist of foreign investments, foreign loans, commercial borrowings, banking capital, etc. Components of capital account

Answer 2

Answer:

The Capital Account component in Balance of Payments (BoP) Capital account records public and private investment, and lending activities. It is the net change in foreign ownership of domestic assets. If foreign ownership of domestic assets has increased more quickly than domestic ownership of foreign assets in a given year, then the domestic country has a capital account surplus.