Any good tricks? I get these mixed up a lot.
I too have difficulty with this. I don’t think there is an easy way to remember the differences because some of the things that are included in each I feel are way too similar and impossible to differentiate. At this point my strategy is to just hope it doesn’t show up.
Although not encompassing of all of the details, at a high level, this is how I keep them relatively straight in my head…
_ Current Account _ = Merchandise.
_ Capital Account _ = Non-Financial Assets + financial assets that migrants bring when they come to a country or take with them when they leave (This second part is the one that is tricky that is perfect for an exam question).
_ Financial Account _ = Foreign assets (Gov’t assets held abroad and Foreign-owned assets in the country).