Whats the main items in the balance of payments capital and financial accounts?



Answer:
The capital account is very small for most countries and not worth bothering about.

The financial account is composed of the balance on ss major items:

1. Foreign direct investment
2. Portfolio investment
3. Changes in international reserves

If the country has a pure floating exchange rate regime, then by definition the change in reserves each year is 0. In that case, #3 above will also be a non-item.
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