Financial Account

Discipline: Economics

Financial Account is the measure of a country's net flows of investment capital, such as financial securities, or foreign direct investment.

If foreign ownership of domestic financial assets exceed the domestic ownership of foreign assets, the country will then have a financial account surplus. If domestic ownership of foreign assets exceed the foreign ownership of domestic financial assets, then the country will have a financial account deficit.

Financial flows may be analyzed with a differentiation for short and long terms.

Also see: balance of payments


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