Capital account

1. It 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. 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. Same as 2 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. A measure of change in cross-border ownership of long-term financial assets, including financial securities and real estate. It is the net results of public and private international investment and lending activities.

Capital account

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