The balance on the financial account excludes?
Question: The balance on the financial account excludes?
The balance on the financial account excludes transactions related to the exchange of goods and services, and instead focuses on international financial flows such as foreign direct investment, portfolio investment, and changes in reserve assets. The financial account records the acquisition and disposal of financial assets and liabilities between residents of one country and residents of other countries. This includes activities such as purchases and sales of stocks, bonds, and real estate, as well as loans and transfers of funds. The financial account is an important component of a country's balance of payments, which tracks all international economic transactions between residents of one country and the rest of the world.
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