difference b/n investment income & (debt and equity investme difference, investment, exchange

pacmandefense

Related to BOP a/c
If there is exchange of investment income it will be counted in current account measure.
If there is a flowof funds for (debt and equity investment) it will be counted in capital account measure.
Whats difference between these two ?
Can someone please explain with one example ?

Nishant1

Interest income/cost, import and exports, unilateral transfer = current account
Principal borrowing (debt) or Foreign direct investment (equity) = capital account
currency reserves, special IMF drawings, gold reserves= official reserve account
Current account + capital account + official reserves = 0