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Define current account and capital account of BOP. |
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Answer» Solution :i) CURRENT account of BOP. It records all those transactions between residents of a COUNTRY and rest of the world which do not CAUSE a change in the asset or liability status of the residents of a country or its government. ii) CAPITAL account of BOP. It records all those transactions between residents of a country and rest of the world which cause a change in the asset or liability status of the residents of a country or its government. |
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