Distinguish between Current account and Capital account.

Current account records receipts and payments of foreign exchange on account of trade in goods and services and transfer payments. Components of current account includes export and import of goods and services and transfer payments to/from abroad.Whereas;Capital account records receipts and payments of foreign exchange on account of such transactions, which affects change in ownership of assets or liabilities of a nation. Components of capital account includes Foreign Direct Investments (FDIs), Foreign Institutional Investments (FIIs), external borrowings and assistance.