Explain the Relationship Between the Current Account and the Capital

question 211

Essay

Explain the relationship between the current account and the capital and financial account in the
balance of payments.

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Definitions:

Market

A place or arrangement through which buyers and sellers engage in exchange of goods and services.

Potential Interactions

This refers to the possible ways in which different factors or agents in an economic, social, or ecological system can affect each other.

Actual Interactions

The real and observable exchanges or engagements between entities, often studied in various fields including sociology, economics, and behavioral science.

Potential Interactions

Possible engagements or relationships between entities or variables in a given context, which could affect outcomes.