Advertisements
Advertisements
Question
Write down the structure of capital account
Solution
Capital account consists of three components
- Private Capital
- Banking Capital
- Official Capital
1. Private Capital: Private capital consists of foreign investments, long-term loans and foreign currency deposits.
2. Banking Capital: Banking capital includes movement into external financial assets and liabilities commercial and co-operative banks authorized to dealing in foreign exchange.
3. Official Capital: It includes RBI’s holdings of foreign currency and special drawing rights (SDR) held by the Government.
APPEARS IN
RELATED QUESTIONS
The Balance of Payments councils consists of ______.
The term official capital includes
What do you mean by Balance of trade?
What is the composition of private capital?
What are the credit items shown in currents accounts?
State the components of capital account.
When the import and export of visible items are equal, the situation is known as ______.
Balance of trade is measured as ______.
Suppose that the Balance of Trade (BOT) of a nation, exhibits a surplus of ₹ 20,000 crores. The import of merchandise of the nation is half of the exports of merchandise to the rest of the world.
The value of exports would be ₹ ____________ crores.
Suppose, following data is presented, for an imaginary economy:
| Year | Visible Exports | Visible Imports |
| 2010 | 280 | 240 |
| 2020 | 580 | 460 |
Identify, which of the statement about the period 2010 to 2020 is correct?
