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

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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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