ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Current Account
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Capital Account
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Errors and Omission Section
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Balance of Trade Section
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Detailed explanation-1: -The financial account deals with money related to: Foreign reserves. Private investments in businesses, real estate, bonds, and stocks.
Detailed explanation-2: -Almost everything you own and use for personal or investment purposes is a capital asset. Examples include a home, personal-use items like household furnishings, and stocks or bonds held as investments.
Detailed explanation-3: -The balance of the capital account also includes all items reflecting changes in stocks. The term capital account is also used in accounting. It is a general ledger account used to record the contributed capital of corporate owners as well as their retained earnings.
Detailed explanation-4: -The two types of share capital are common stock and preferred stock. Companies that issue ownership shares in exchange for capital are called joint stock companies.
Detailed explanation-5: -Definition: Capital account can be regarded as one of the primary components of the balance of payments of a nation. It gives a summary of the capital expenditure and income for a country.