Difference b/w:

1. BOT & BOP

2. BOT & balance on current account

3. current account & capital account

(please answer in points.(3-4marks))

Solution (i)

The answer to the concerned question has been covered in our study material. You can find it at the below mentioned link.



Solution (ii)

Basis of difference

Balance of Trade

Balance on Current Account


Balance of Trade is the record of visible transactions of the country.

It is a record of the visible as well as invisible and unilateral transactions.


It is the balance of exports and imports of all physical goods of the country.

It is the balance of visible trade, invisible trade and unilateral transfers.

Nature of transactions

It records the transactions relating to physical goods only.

It records the transactions relating to goods, services as well as unilateral transactions.


Solution (iii)

Basis of difference

Current Account

Capital Account


The Current Account maintains the records of imports and exports of goods and services as well as the record of unilateral transfers. 

The Capital Account records all the transactions that cause a change in the status of assets and liabilities of the government or any of the residents of a country 


Components are:

1. Export and Import of goods

2. Export and Import of services

3. Unilateral Transfers

Components are:

1. FDI and Portfolio Investment

2.Loans and borrowings

3.Banking Capital transactions

  • 1
What are you looking for?