A country's Balance of Payment includes two components - Current account, Capital

and financial account. Current account measures the value of all goods and services

imported and exported during a given financial year. Current Account Deficit (CAD)

arises when the value of imported goods and services exceeds the value of exported

goods and services. As on June 30, 2020 RBI reported India's current account deficit

has been reduced to 0.9% of the GDP in 2019-20 as compared to 2.1% in FY 2018-19

due to curtailed imports

a. Differentiate between Current account and Capital account.

b. What measures can be taken to reduce the disequilibrium in the balance of payments'

position?