Difference b/w: 1. BOT & BOP 2. BOT & balance on current account 3. current account & capital account (please answer in points.(3-4marks))
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Here are some of your differences. Have a look!
- The balance of trade defines the record of visible transactions of any country, whereas balance on current account deals with visible as well as invisible transactions.
- BOT is the balance of exports and imports, whereas balance on current account deals with the visible, invisible and unilateral transfers.
- BOT records the transactions of physical goods only and balance on current account deals with goods and services.
- The current account maintains the records of imports and exports of goods and services and capital account deals with the assets and liabilities.
- The current account includes export and import of goods and services where capital account have components like loans and borrowings.
- The balance of trade defines the record of visible transactions of any country, whereas balance on current account deals with visible as well as invisible transactions.
- BOT is the balance of exports and imports, whereas balance on current account deals with the visible, invisible and unilateral transfers.
- BOT records the transactions of physical goods only and balance on current account deals with goods and services.
- The current account maintains the records of imports and exports of goods and services and capital account deals with the assets and liabilities.
- The current account includes export and import of goods and services where capital account have components like loans and borrowings.
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