Balance of Capital Account Solution

STEP 0: Pre-Calculation Summary
Formula Used
Balance of Capital Account = Surpluses or Deficits of Net Non-Produced+Non-Financial Assets+Net Capital Transfers
BOPcapital = NNPS/D+NFA+NCTr
This formula uses 4 Variables
Variables Used
Balance of Capital Account - Balance of Capital Account is s a record of all transactions which alter the external assets and/or liabilities of a country.
Surpluses or Deficits of Net Non-Produced - Surpluses or Deficits of Net Non-Produced assets refer to the difference between the value of non-produced assets owned by an entity and the value of non-produced assets it uses.
Non-Financial Assets - Non-Financial Assets are assets with a physical value such as real estate and equipment. It can also include intellectual property.
Net Capital Transfers - Net Capital Transfers are the net cash or in-kind transactions in which the ownership of an asset is transferred from one economic unit to another.
STEP 1: Convert Input(s) to Base Unit
Surpluses or Deficits of Net Non-Produced: 45000 --> No Conversion Required
Non-Financial Assets: 40000 --> No Conversion Required
Net Capital Transfers: 36000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
BOPcapital = NNPS/D+NFA+NCTr --> 45000+40000+36000
Evaluating ... ...
BOPcapital = 121000
STEP 3: Convert Result to Output's Unit
121000 --> No Conversion Required
FINAL ANSWER
121000 <-- Balance of Capital Account
(Calculation completed in 00.004 seconds)

Credits

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Created by Keerthika Bathula
Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad
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Balance of Capital Account Formula

​LaTeX ​Go
Balance of Capital Account = Surpluses or Deficits of Net Non-Produced+Non-Financial Assets+Net Capital Transfers
BOPcapital = NNPS/D+NFA+NCTr

What is Balance of Capital Account?

The balance of the capital account is a component of a nation's balance of payments (BoP) that measures the flow of financial assets between a country and the rest of the world over a specified period. The capital account includes transactions in financial assets such as stocks, bonds, real estate, and direct investments. A positive balance in the capital account indicates that a country is receiving more investment from foreign sources than it is investing abroad, while a negative balance suggests the opposite. This balance reflects the net change in a country's ownership of foreign assets and foreign ownership of domestic assets. In summary, the capital account balance provides insights into the financial relationships between a country and the rest of the world, highlighting the inflows and outflows of investment capital.

How to Calculate Balance of Capital Account?

Balance of Capital Account calculator uses Balance of Capital Account = Surpluses or Deficits of Net Non-Produced+Non-Financial Assets+Net Capital Transfers to calculate the Balance of Capital Account, The Balance of Capital Account keeps track of the net change in a nation's assets and liabilities during a year. Balance of Capital Account is denoted by BOPcapital symbol.

How to calculate Balance of Capital Account using this online calculator? To use this online calculator for Balance of Capital Account, enter Surpluses or Deficits of Net Non-Produced (NNPS/D), Non-Financial Assets (NFA) & Net Capital Transfers (NCTr) and hit the calculate button. Here is how the Balance of Capital Account calculation can be explained with given input values -> 121000 = 45000+40000+36000.

FAQ

What is Balance of Capital Account?
The Balance of Capital Account keeps track of the net change in a nation's assets and liabilities during a year and is represented as BOPcapital = NNPS/D+NFA+NCTr or Balance of Capital Account = Surpluses or Deficits of Net Non-Produced+Non-Financial Assets+Net Capital Transfers. Surpluses or Deficits of Net Non-Produced assets refer to the difference between the value of non-produced assets owned by an entity and the value of non-produced assets it uses, Non-Financial Assets are assets with a physical value such as real estate and equipment. It can also include intellectual property & Net Capital Transfers are the net cash or in-kind transactions in which the ownership of an asset is transferred from one economic unit to another.
How to calculate Balance of Capital Account?
The Balance of Capital Account keeps track of the net change in a nation's assets and liabilities during a year is calculated using Balance of Capital Account = Surpluses or Deficits of Net Non-Produced+Non-Financial Assets+Net Capital Transfers. To calculate Balance of Capital Account, you need Surpluses or Deficits of Net Non-Produced (NNPS/D), Non-Financial Assets (NFA) & Net Capital Transfers (NCTr). With our tool, you need to enter the respective value for Surpluses or Deficits of Net Non-Produced, Non-Financial Assets & Net Capital Transfers and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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