Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

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?

Options:

current account

capital account

goods and services account

balance of payment account

Correct Answer:

capital account

Explanation:

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.