Prompt Title: Capital Account Basics.

The capital account is a component of a country's balance of payments (BoP) that records transactions involving the movement of financial capital into or out of a country. It includes all transactions that involve capital transfers or acquisition of non-produced, non-financial assets.

Examples of transactions that are recorded in the capital account include foreign direct investment (FDI), portfolio investments, loans, and transfers of financial assets between residents and non-residents. In contrast to the current account, which records transactions related to the trade in goods and services, the capital account records transactions related to financial assets and liabilities.

The capital account is an important indicator of a country's financial health, as it reflects the inflows and outflows of capital into and out of a country. A capital account surplus indicates that a