{"id":288619,"date":"2024-03-29T19:02:01","date_gmt":"2024-03-29T13:32:01","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=288619"},"modified":"2024-03-29T19:02:01","modified_gmt":"2024-03-29T13:32:01","slug":"difference-between-the-current-and-capital-account","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/difference-between-the-current-and-capital-account\/","title":{"rendered":"Difference between the current and capital account"},"content":{"rendered":"<p><strong>Source-<\/strong>This post on <strong>Difference between the current and capital account<\/strong> is based on the article\u00a0<a href=\"https:\/\/indianexpress.com\/article\/business\/economy\/current-account-deficit-narrows-in-october-december-rbi-9234717\/\" target=\"_blank\" rel=\"noopener\"><strong>\u201cCurrent account deficit narrows to 1.2% of GDP at $10.5 billion in Oct-Dec: RBI&#8221;<\/strong><\/a>\u00a0published in\u00a0<strong>\u201cThe Indian Express\u201d<\/strong> on 27th March 2024.<\/p>\n<h2>Why in the News?<\/h2>\n<p>Recently, RBI stated that current account deficit narrows to 1.2 % of GDP at $10.5 billion in Oct-Dec. In the second quarter of FY2024, the country CAD stood at $11.4 billion, or 1.3 per cent GDP.<\/p>\n<h2>Difference between the current and capital account<\/h2>\n<p><strong>About Current Account:<\/strong><\/p>\n<p>1) It reflects the <span style=\"color: #ff0000;\">net income of a country.<\/span><\/p>\n<p>2) It records transactions related to <span style=\"color: #ff0000;\">trade in goods and services, investment income, and unilateral transfers.<\/span><\/p>\n<p>3) Its components include the <span style=\"color: #ff0000;\">balance of trade (exports and imports of goods), services, net investment income, and net cash transfers.<\/span><\/p>\n<p>4) In case of Current account, a <span style=\"color: #ff0000;\">negative balance<\/span> indicates <span style=\"color: #ff0000;\">higher imports than exports,<\/span> while a <span style=\"color: #ff0000;\">positive balance<\/span> shows <span style=\"color: #ff0000;\">higher exports.<\/span><\/p>\n<p>5) <span style=\"color: #ff0000;\">Current account deficit\u00a0<\/span>is the difference between exports and imports of goods and services. It is a key indicator of the country\u2019s external sector.<\/p>\n<p><strong>About Capital Account:<\/strong><\/p>\n<p>1) It reflects the <span style=\"color: #ff0000;\">net change in ownership of national assets.<\/span><\/p>\n<p>2) It deals with the sources and application of capital, such as <span style=\"color: #ff0000;\">foreign direct investment, portfolio investment, and government loans.<\/span><\/p>\n<p>3) It records the <span style=\"color: #ff0000;\">trading of foreign assets and liabilities, including investments, loans, and banking capital movements.<\/span><\/p>\n<p>4) In case of capital account, a <span style=\"color: #ff0000;\">surplus indicates<\/span> an i<span style=\"color: #ff0000;\">nflow of money into the country<\/span>, while a <span style=\"color: #ff0000;\">deficit<\/span> indicates <span style=\"color: #ff0000;\">capital moving out of the country.\u00a0<\/span><\/p>\n<p><strong>UPSC Syllabus: Indian economy<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source-This post on Difference between the current and capital account is based on the article\u00a0\u201cCurrent account deficit narrows to 1.2% of GDP at $10.5 billion in Oct-Dec: RBI&#8221;\u00a0published in\u00a0\u201cThe Indian Express\u201d on 27th March 2024. Why in the News? Recently, RBI stated that current account deficit narrows to 1.2 % of GDP at $10.5 billion&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/difference-between-the-current-and-capital-account\/\">Continue reading <span class=\"screen-reader-text\">Difference between the current and capital account<\/span><\/a><\/p>\n","protected":false},"author":10366,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127],"tags":[11872,10500],"class_list":["post-288619","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","tag-9pm-daily-factly","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/288619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10366"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=288619"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/288619\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=288619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=288619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=288619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}