2 In the current account, exports of goods and services, receipts of investment income from assets held abroad, and transfers received from abroad count as credit (plus) items. Imports of goods and services, payments of investment income to foreigners holding assets in the home country, and transfers sent abroad are debit (minus) items in the current account. The current account balance, CA, equals the value o credit items less debit items in the current account. Setting net factor payments and net transfers to zero makes the current account bal- ance the same as net exports, NX. The capital account balance, KA, is the value of assets sold to foreigners (capital inflows) minus the value of assets purchased from foreigners (capital outflows).