BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The four major components of a current account are goods, services, income, and current transfers.

Detailed explanation-2: -There are three components to the current account – the ‘trade balance’, ‘primary income balance’ and ‘secondary income balance’. In economic analysis or commentary, most attention is usually given to the trade balance, which records the difference between the value of our exports and imports of goods and services.

Detailed explanation-3: -Current account measures the nation’s earnings and spendings abroad and it consists of the balance of trade, net primary income or factor income (earnings on foreign investments minus payments made to foreign investors) and net unilateral transfers, that have taken place over a given period of time.

Detailed explanation-4: -The Components of the Capital Account are Foreign investment, such as FDI and FPI, immovable properties, intangible assets, trade credits, borrowings from other nations, banking capital, and changes in the foreign exchange reserve.

Detailed explanation-5: -The balance of trade is typically measured as the difference between a country’s exports and imports of goods. To calculate the balance of trade, you would subtract the value of a country’s imports from the value of its exports.