What is the Current Account?
The current account represents a country’s imports and exports of goods and services, payments made to foreign investors, and transfers such as foreign aid.
What is current account explain?
While a Savings Account is one wherein you deposit your savings with the bank and earn interest on the same, a current account is one where you deposit money to carry out business transactions.
What is current account example?
Current account measures the nation’s earnings and spendings abroad and it consists of the balance of trade, net primary income or factor income (earnings on foreign investments minus payments made to foreign investors) and net unilateral transfers, that have taken place over a given period of time.
What is the benefit of current account?
A current account holder can deposit cash or cheques at different bank branches which makes it extremely convenient to collect payments from small customers. Availing an overdraft facility against a current account is easy. Having an overdraft helps meet the working capital needs of the business at any point in.
What is the current account in the balance of payments?
The current account balance of payments is a record of a country’s international transactions with the rest of the world. The current account includes all the transactions (other than those in financial items) that involve economic values and occur between resident and non-resident entities.