The financial account consists of which four components?
stock investment, bond investment, derivative investment, and mutual fund investment |
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direct investment, stock investment, net financial derivatives, and bond investment |
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direct investment, portfolio investment, net financial derivatives, and other asset investment |
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mutual fund investment, portfolio investment, derivative investment, and stock investment |
Answer: Direct investment, portfolio investment, net financial derivatives, and other asset investment
Financial account is one of the components of balance of
payments (BOP) of a country.
It consists of direct investment, portfolio investment, net
financial derivatives, and other asset investment
The direct investment here refers to a type of international
investment, portfolio investments could be like investments in
equity etc.
Financial derivatives refers to contracts that are usually settled
by cash payments and the other asset investment refers to the
assets held locally or in other countries.
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