Capital Account

The capital account is a component of a country's balance of payments, which records the movement of money related to investments and financial assets. It includes foreign investments in domestic assets and domestic investments abroad, as well as transfers like gifts and inheritances. Essentially, it shows how capital flows in and out of a country—reflecting its financial health and attractiveness to investors. A positive capital account indicates more money coming in than going out, suggesting confidence in the economy, while a negative balance may raise concerns about economic stability.