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1.Current Account Balance is Rate sensitive for interest Calculation (For international Balance of Payment)
2.Non rate sensitive for interest calculation in case of Current accounts maintained by the customer in a Bank account, normally.
For the sake of international comparability, all countries are required to adhere to the IMF guidelines when drawing up their balance of payments. These prescribe the debtor approach method for determining interest income and expenditure, which determines interest flows based on the yield to maturity at issuance
Current account balances are rate sensitive
Option B
I agree with the experts.
"Current "account balance is b. Rate non sensitive.
b. Rate non sensitive.
