State any four components (items) of capital account of BOP account.

Capital Account. The capital account of BOP records all such transactions which relate to purchase and sale of foreign assets and foreign liabilities during a year. It shows all the inflows and outflows of capital. It represents international flow of loans and investments which cause a change in country's foreign assets and liabilities. Capital account flows consist of foreign investments, foreign loans, commercial borrowings, banking capital, etc.
Components of capital account. Main forms of capital account transactions are given below:
(i)    Foreign investment. This refers to investment to and from Rest of World. Investment may be direct or portfolio. Direct investment means purchasing an asset and acquiring control of the same e.g. purchase of a house abroad. As against it portfolio investment means acquisition of asset that does not give control over asset, e.g. purchase of a bond issued by a foreign government.
(ii)    Foreign loans. These refer to credit granted by foreign governments and international institutions like IMF. External commercial borrowing are also included.
(iii)    Banking capital and other capital. Banking capital includes inflow and outflow of banking capital (non-residints deposits) excluding the central bank.
(iv)    Monetary movements or changes in foreign exchange reserve. This reserve keeps on changing depending upon the net balance of other private and official transactions.
The following extract from RBI's quarterly bulletin clearly shows the components of capital account of Balance of Payment.

Source: Reserve Bank of India bulletin, May 2011.

Mind, the sum of current account and capital account should be zero. A deficit (or surplus) on current account is always matched by an equal surplus (or deficit) in capital account.