The financial account on a country's balance of payments includes transactions that result in a change of ownership of financial assets and liabilities between a country’s residents and non-residents. Thisincludes:
1.Net balance of foreign direct investment flows(FDI)
2.Net balance of portfolio investment flows (e.g. inflows/outflows of debt andequity)
3.Balance of banking flows (e.g. hot money flowing in/out of a country’s commercialbanks)
4.Changes to the value of reserves of gold and foreigncurrency
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