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What is International Flow of Funds?
To check and follow the flow of funds or FOF, a number of set accounts are used in Economy. These are used in various sectors such as business, farms or households. These accounts are used to analyse the economic data related to –
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Balance of Payments:
To analyse the International Flow of Funds, the set of accounts take the domestic and foreign payment transactions. Both credit and debit transactions are taken into account. There are three accounts that represent these transactions –
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Know the different accounts:
With our International Flow of Funds Homework Help services, students can form a deep insight on the different accounts related to Balance of Payments.
This summarizes the FOF from one country to all those countries that goods and services are purchased from. It helps in assessing balance of trades. Balance of trades shows the difference between imports and exports.
This deals in the unilateral current transfers like transfer by immigrants, debt forgiveness and selling or purchasing right to patents and natural resources.
This account deals in the FOF that occurs when one country sells the assets to the other countries. These assets can be direct foreign investments, investment in securities or any government asset.
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