What is the financial account ?

Question

Accepted Answer

The financial account is a component of a country's balance of payments that records transactions involving financial assets and liabilities.

It tracks the flow of funds between a country and the rest of the world.
It includes transactions such as foreign direct investment, portfolio investment, and loans.
The financial account is divided into subcategories like direct investment, portfolio investment, and other investment.
Direct investment involves the acquisition of a controlling interest in a foreign company.
Portfolio investment includes the purchase of stocks, bonds, and other financial instruments in foreign markets.
Other investment covers transactions like bank deposits, loans, and trade credits.
The financial account helps measure a country's capital flows and its ability to finance its current account deficits or surpluses.
It is an important indicator of a country's economic health and attractiveness to foreign investors.

Accepted Answer

Financial accounting is a specific branch of accounting involving the process of recording, summaries transaction resulting from business operation over a period of time.

What is the financial account ?

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