Skip to main content
Dictionary
Store
Blog
World
Help
Advertise
Chat
System Status
Information Collection Notice
Trademark Concerns
reCAPTCHA Privacy
Terms of Service
reCAPTCHA Terms
Privacy Policy
Accessibility
Report a Bug
Data Request
Contact Us
Security
DMCA
© 1999–2026 Urban Dictionary ®
Mugs
Tees
Hoodies
Pro Customization
Create unique products with your own words and definitions
Preview
Personalize Your Design
Your Word
Your Definition
Capital (in economics) refers to either equipment used to produce goods (tools, factory buildings, infrastructure) or money that is currently used to pay for business ventures. Capital accounts refers to the balance of investment that a country receives from, or supplies to, other countries over the course of a business period. So, for example, in the course of a year the people in country A may buy $1.5 million in shares and bonds from overseas, and sell $900,000 of the same (for net capital exports of $600K); meanwhile, foreigners might buy $1.2 million in shares, etc., while selling $800K of the same (capital imports of $400K). The country therefore exports $600K, imports $400K, and runs a net capital account balance of -$200K. Over the short run, a capital account surplus can offset a current account deficit.
Text fits
Save
Cancel