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The capital account records transactions of purchase and sale of foreign assets and liabilities during a particular year.
Where as the current account records exports and imports of goods and services as well as unilateral transfers.
The current account records exports and imports of goods and services as well as unilateral transfers whereas the capital account records transactions of purchase and sale of foreign assets and liabilities during a particular year.
I agree with the expert answers; in addition the current account reflects a nation's net income, the capital account reflects net change in ownership of national assets.
Agree with the answer added Manseer Muhammed.
The current account records exports and imports of goods and services as well as unilateral transfers whereas the capital account records transactions of purchase and sale of foreign assets and liabilities during a particular year. The current account considers goods and services currently being produced. The credit and debit of foreign exchange due to these transactions are also recorded in the balance of current account. The capital account is concerned with payments of debts and claims, regardless of the time period.
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