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The account that shows international transactions involving financial transactions (stocks, bonds, bank loans, etc.) is called the capital account.

The capital account is an account  which is a record of the inflows and the outflows of capital which directly affect the foreign assets and liabilities of the nation. It is concerned with all the international trading transactions happening between citizens of one country and the citizens of other countries.

The components of the capital account includes different items such as  foreign investment and loans, and other forms of capital, banking as well as monetary changes or movements in the foreign exchange reserve.

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