What are the major components of capital Account among the followings ?

(A) Bank Deposits

(B) Investments

(C) External Borrowings

(D) External Assistance

Choose the correct answer from the options given below :

(B), (C) & (D) Only

The correct answer is option (2) : (B), (C) & (D) Only

Capital Account: This account records all international transactions of assets. It reflects changes in ownership of national assets.

Major Components:

(B) Investments: This includes Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI), which directly affect ownership and control of assets.

(C) External Borrowings: Loans taken from foreign entities, which create liabilities and change the country's asset/liability position.

(D) External Assistance: Aid and grants received from foreign governments or organizations, which contribute to capital inflows.

Note:In the context of the Balance of Payments (BoP), only certain types of bank deposits — specifically those by non-residents (like NRIs) — are classified under the Capital Account.

However, if “Bank Deposits” is mentioned without specifying that they are from non-residents, then: