What is the difference between Current account, Investment Income and Capital account?

Both has something to do with investment or dealing with different country!


I want to know the significant difference.





I thought this example belongs to capital account, but it is current account, invest in income





Ford Motor company's profit from a plant operated in Hungary.|||Capital Account is: the change in foreign ownership of domestic assets minus the change in domestic ownership of foreign assets





Current Account is: Exports plus foreign money coming in (repaid loans and interest) minus imports minus domestic money going out (foreign aid, etc)





Investment income is just any income coming from interest payments, dividends, capital gains, and any other profit that is made through a general investment.





Ford Motor company's profit from a plant operated in Hungary is simply investment income. It can be used to help figure out capital account, and yes maybe technically it can be considered part of current account.





Hope this helps :)





Edit note:


Oh -- the change in the value of the assets, and/or the change in the amount of assets (changing up or changing down). So if the change in foreign ownership of domestic assets goes up, then that means more cash is coming in, and it results in a country's capital account going up.