DMPQ: Define following term ( Eco) a) Current account b) Capital account c) Balance of payment d) Trade balance

Current account:       Current account refers to the account maintained by every government of the world in which every kind of transaction is shown, this account is maintained by the central banking body. Current transactions of an economy in foreign currency all over the world- export, import, interest payments, foreign investments in share.

 

Capital account:         Capital account of Balance of payment records all the transactions, between the residents of country and rest of the world, which cause a change in the assets or liabilities of the residents of the country or its government

                  

Balance of payments:         The balance of payment is a statement of all transactions made between entities in one country and the rest of the world.

                  

Trade balance:  The balance of trade is the difference between the value of a country’s imports and exports for a given period. The balance of trade is the largest component of a country’s balance of payments.

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