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Financial Account & International fund

Question:

The Financial Account captures international fund flows due to i._____. ii. Briefly Explain?

Answer:

(i)    Purchase and selling of assets

(ii)   The Financial Account captures the long term flow of funds in and out of a country. This mainly involves capital inflows and outflows caused due to transactions in financial assets like bonds, equities etc.

 

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    Question: The Financial Account captures international fund flows due to i._____. ii. Briefly Explain? Answer: (i)    Purchase and selling of assets (ii)   The Financial Account captures th