Abstract

415. Chapters 4, 5, and 6 have dealt with three components of the current account: goods, services, and income. Chapter 7 focuses on transactions recorded under current transfers, which constitute the remaining component of the current account. Components of the capital account (part of the capital and financial account) are also examined. Recorded in the capital account are capital transfers, which are closely related in concept to current transfers, and transactions concerning the acquisition or disposal of non-produced, nonfinancial assets (such as patents and copyrights). However, before these items are discussed in detail, consideration will be given to topics relevant to the recording, in the balance of payments, of both current and capital transfers.