Question
Which among the following is NOT included in the capital
account of a country?Solution
Capital Account of a country records all the international purchases and sale of assets such as money, stocks, bonds etc. It includes all the international capital transfer such as Foreign Direct Investment (FDI), Foreign Institutional Investment (FII), External Commercial Borrowing (ECB), financial assets by migrants leaving or entering the country. The exports and imports of a country are included in the current account of a country.Â
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