List and explain theimportance of the three components of the current account.
The main components of Current Account are:
1. Export and Import of Goods(Merchandise Transactions or Visible Trade): this componentis important for the country, which is export oriented or dependson merchandise export like China.
2. Export and Import of Services (Invisible Trade): thisgroup is important for country, which are dependent on servicesector for major income like Singapore.
3. Remittances or unilateral transfer: this is majorcomponent for country which has major chunk of their nationalsliving outside the country and sending continuously remittances totheir own economy like India.