Answer :
The Current Account and Financial Account are two of the three main categories of the Balance of Payments, a macroeconomic measure of a country's international transactions.
Both of these accounts are closely linked, as they both measure the flow of money between a country and the rest of the world. The Current Account measures money flowing in and out through trade and investment, while the Financial Account measures money flowing in and out through the sale and purchase of assets.
The two accounts are linked in that a country's current account balance affects its financial account balance. When a current account deficit occurs, the foreign entities that are owed money will often invest in the domestic economy, leading to a financial account surplus. Similarly, when a current account surplus occurs, domestic entities will often invest abroad, leading to a financial account deficit.
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