Match the following..
Please give explanation also.

Dear student,
(a)Current Account of Balance of Payments shows- (iv) Change in current level of country's income
(b)Capital Account of Balance of Payments shows-(ii) Change in capital stock

(a)The main components of Current account are:
1)Export and Import of goods i.e. visible trade
2)Export and Import of Services i.e. invisible trade
​​​​​​​3)Unilateral Transfers to and from abroad
​​​​​​​4)Income receipts and payments to and from abroad
Therefore all the transactions which affect the income, output and employment of a country is recorded in current account, which shows change in current level of country's income.

(b)The main components of Capital account are:
1)Borrowing and landings to and from abroad
2)Investments to and from abroad
3)Change in Foreign Exchange Reserves

Therefore all the transactions that brings change in capital stock i.e.change in the assets and liabilities of country , between resident of country and the rest of the world is shown in Capital account.



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