What is a Current Account?

Current Account is an important indicator of the economic health of a nation. It keeps a record of the transactions of the nation with the rest of the world i.e. the net of trade in goods and services, net transfer payments and also net earnings on cross-border investments over a span of a year. It […]

What is Capital Account?

Capital Account states the roundup of capital expenditure and income of a nation and is a vital part of the balance of payments of a nation. It is usually tracked by various investments and loans coming and going out of the economy. It is made up of foreign direct investments, portfolio investments etc. It summarises […]

What is Balance of Payments?

The Balance of Payments is defined as the synopsis of the transactions of the national economy with the rest of the world. The term covers all the transactions which are done between the residents and non-residents of the country encompassing the goods, services and income. It also covers the liabilities and all transfer as gifts. […]

What is Balance of Payments?

Balance of Payments (BOP) is a systematic and summary record of a country’s economic and financial transactions with the rest of the world, over a period of time, say one year. Structure of Balance of Payments The format of the balance of payments given below shows the important types of transactions that enter the balance of […]