Model Paper 4 — Economics STD 12 Commerce — Question

Balance of payments refers to systematic records of all economic transactions between the residence of a country and the residence of foreign countries during a given period of time, particularly one year.
Balance of payments broadly comprises the following:
i. Current Account- Current Account is that account which records imports and exports of goods and services and unilateral transfer.
ii. Capital Account- Capital Account is that account that records all such transactions between residents of a country and rest of the world which results in a change in the asset or liability status of the residents of a country and government. For example Borrowing