Question

What do you mean by capital account? Briefly discuss its components.​

Answer 1

Explanation:

The components of the capital account include foreign investment and loans, banking and other forms of capital, as well as monetary movements or changes in the foreign exchange reserve. The capital account flow reflects factors such as commercial borrowings, banking, investments, loans, and capital.

Answer 2

The capital account measures capital transfers and non-financial assets that enter or leave a country during a certain period. It is one of the main components of the balance of payments; the other two are the current and the financial accounts. The capital account has two main subaccounts.