Components of Capital Account

by:Adil.M.A.Khan M.S.(Banking)
• Balance of Payments

• Capital Account Roadmap

• Components of Capital Account

• Balances on the Current and

Capital Accounts of the US

• Capital Account convertibility



 Balance of Payments


 The Balance of Payments is

the statistical record of a
country’s international
transactions over a certain
period of time presented in
the form of double-entry
bookkeeping.
•
 BALANCE OF PAYMENTS


Current Account Capital and Financial Account

•
• Difference between sale Capital Account
and purchase of assets.
•
• Composition
•
• Statistical Discrepancy
Capital Account
• The Capital Account
(i) capital transfers and (ii) the acquisition/disposal

of non-produced, non-financial assets.



• The Financial Account

(i) direct investment, (ii) portfolio investment, (iii)

other investments (trade credits, loans, currencies

and deposits) and (iv) changes in reserves.
Balances on the Current and Capital
Accounts of the US

500
400
300
200
100
U.S. BCA
0
U.S. BKA
-1001982 1984 1986 1988 1990 1992 1994 1996 1998 2000
-200
-300
-400
-500
Capital Account
convertibility
 What is it ?


 Importance

 Difference

between CAC
and Current AC

 Indian position

Thank
You