Economics Aggregate Demand And Supply Questions
The concept of the capital account refers to a component of a country's balance of payments that records the inflow and outflow of financial capital. It includes transactions related to investments, loans, and other financial assets between a country and the rest of the world. The capital account is divided into two main categories: the capital account proper, which includes long-term investments and transfers of ownership of fixed assets, and the financial account, which includes short-term investments and changes in financial assets and liabilities. The capital account is an important indicator of a country's financial health and its ability to attract foreign investment.