Which of the following account records all the transactions between the residents of the country and the rest of the world causing a change in assets and liabilities of the residents of the country or its government?

Capital account

The correct answer is option 1: Capital account

Capital account of BOP records all the transactions between the residents of the country and the rest of the world which cause a change in assets and liabilities of the residents of the country or its government.

Here’s a brief overview of each option:

• Capital Account: This records transactions involving changes in the ownership of assets and liabilities between residents and non-residents, including foreign investments, loans, and the purchase/sale of assets. It reflects changes in a country's assets and liabilities.

• Current Account: This records transactions related to the trade of goods and services, income from investments, and unilateral transfers, but does not directly involve changes in assets and liabilities.

• Errors and Omissions Account: This account is used to adjust for discrepancies and is not a primary account for recording transactions affecting assets and liabilities.

• Autonomous and Accommodating Accounts: These terms refer to different types of transactions within the current account or capital account, but they are not specific accounts themselves.