What is the account which cause a change in the asset or liability status of the residents of a country or its government called as?
Answer & explanation
Correct answer: option 2
The correct answer is option 2:capital account
The capital account records the changes in national ownership of assets or liabilities whereas the current account records the value of exports and imports of both goods and services and international transfers of capital.
The capital account records transactions involving financial assets and liabilities, such as loans, investments, and transfers of capital, which impact a country's asset or liability status.