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? Include: ( 1) Merchandise trad flows – visible trade ( 2) Service flows – invisible trade (3) Ine flows a. Investment Ine b. Compensation of employees (4) Unilateral transfer (gift) (Current transfer) a. Goverment grants b. Private individuals Financial Account Records the values of financial assets purchased and sold abroad by private residents (not moary authorities) of the home country. A financial account surplus indicates that, on , financial capital has flowed into the country ?Include: Direct investment 直接投資 Portfoli investment 證券投資 Other investment 其他投資 ? Capital inflow:Either an increase in the nation’ s assets abroad, or a reduction in foreign assets in the nation. Credit items ? Capital outflow: Either an increase in foreign assets in the nation, or a reduction in the nation’ s assets abroad Debit items Official International Reserves Assets held by a nation’ s moary authorities as a kind of “ war chest” to enable them to intervene in the foreign exchange market if and when they decide to do so. ?Include: Gold Foreign Exchange Assets reserve position at the IMF Special Drawing Rights (SDRs) Other Creditor Statistical Discrepancy (Error and omissions) (1) The data statistics is not plete (2) Statistics calculate repetitively and lapse (3) Something is calculate ? Six balances ? Merchandise (goods) trade balance ? Goods and service balance (trade balance) ? Goods, service, and ine balance ? Current account balance ( foreign investment) ? Financial account balance ? Overall balance (official settlement balance) 19 Figure The macro meaning of the current account balance Som