Capital account

 

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Capital account

1. (Current definition) Since sometime in the 1990s, "capital account" refers to a minor component of international transactions, involving unilateral transfers of ownership of property. The common definition, below, describes what is now called the financial account. 2. (Common definition) A country's international transactions arising from changes in holdings of real and financial capital assets (but not income on them, which is in the current account). Includes FDI, plus changes in private and official holdings of stocks, bonds, loans, bank accounts, and currencies. 3. (Bretton-Woods definition) Same as common definition except excluding official reserve transactions. This definition was used under the Bretton Woods System of pegged exchange rates, but is less meaningful under floating exchange rates.

Capital account

Net result of public and private international investment and lending activities.



Capital account

Similar Matches

Physical capital

Physical capital

The same as "capital," without any adjective, in the sense of plant and equipment. The word "physical" is used only for clarity, to distinguish it from human capital and financial capital.


Capital outflow

Capital outflow

A net flow of capital, real and/or financial, out of a country, in the form of reduced holdings of domestic assets by foreigners and/or increased purchases of foreign assets by domestic residents. Recorded as negative, or a debit, in the balance on capital account.


Capitalization rate

Capitalization rate

The rate of interest used to calculate the present value of a number of future payments.


Capital structure

Capital structure

The components which form a company's capital :ordinary shares, preference shares, debentures and loan stock.In the US, the equivalent components are: common stock, long term debt and preferred stock.


Capital rationing

Capital rationing

Placing limits on the amount of new investment undertaken by a firm, either by using a higher cost of capital, or by setting a maximum on the entire capital budget or parts of it.


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