The component of balance of payments which shows how the balance of both current...

The question is asking about a component of the balance of payments that shows how both the current account and the capital account are settled. The balance of payments is a record of all the economic transactions between a country and the rest of the world. It is divided into two main accounts: the current account and the capital account.

The current account includes the balance of trade (exports minus imports of goods and services), net income from abroad (such as dividends and interest), and net transfers (such as foreign aid). It shows the flow of goods, services, and income between a country and other nations.

The capital account includes capital transfers (such as debt forgiveness or migrants' transfers) and the acquisition or disposal of non-produced, non-financial assets (such as land or patents). It shows the flow of capital between a country and other nations.

Now, let's look at the options. Option A is "current account." While the current account is an important component of the balance of payments, it does not show how both the current and capital accounts are settled. So, Option A is not the correct answer.

Option B is "monetary movement account." This option correctly describes the component of the balance of payments that shows how both the current and capital accounts are settled. It refers to the financial transactions that occur to settle imbalances between the current and capital accounts. For example, if a country has a deficit in its current account, it can be financed by capital inflows from other countries. So, Option B is the correct answer.

Option C is "capital account." While the capital account is part of the balance of payments, it does not show how both the current and capital accounts are settled. It focuses on the flow of capital between a country and other nations. So, Option C is not the correct answer.

Option D is "social-welfare account." This option is unrelated to the balance of payments and is not a component that shows how the current and capital accounts are settled. So, Option D is not the correct answer.

In conclusion, the correct answer to the question is Option B: monetary movement account. This component of the balance of payments shows how both the current and capital accounts are settled through financial transactions.