Which account of the balance of payments records all international transactions of assets?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → capital account
The capital account records all international transactions of assets: money, stocks, bonds, government debt and so on. The current account records trade in goods and services and transfer payments.
NCERT (2026-27): “6.1.2 Capital Account Capital Account records all international transactions of assets. An asset is any one of the forms in which wealth can be held, for example: money, stocks, bonds, Government debt, etc. …” |