Question

difference between capital account and reserve account

Answer 1

The balance of payments of a country contains two accounts: current andcapital. The current a account  records exports and imports of goods and services as well as unilateral transfers, whereas the capital account  records purchase and sale transactions offoreign assets and liabilities during a a particular year

Answer 2

The capital account consists of capital transfers and the acquisition and disposal of real and intangible assets, such as real estate or patents. ... The official reserves account, which is part of the financial account, is the foreign currency held by central banks, and is used to pay balance-of-payment deficits.
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