ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -A current account, also known as financial account is a type of deposit account maintained by individuals who carry out significantly higher number of transactions with banks on a regular basis. It is created by the bank on request of the applicant and is made available for frequent or immediate access.

Detailed explanation-3: -A current account can easily be opened with only an undertaking. The borrower can maintain current accounts with any one of the banks with which it has a CC/OD facility, the bank has at least 10 percent of the exposure of the banking system to that borrower.

Detailed explanation-4: -Packaged Current Account: The Packaged Current Account is one of those types of Current Account, which is in between the premium account and standard Current Account. Foreign Currency Account : Single Column Cash Book :