Balance of Financial Account Calculator

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✖Net Direct Investment is measures the net flow of capital resulting from the acquisition of lasting interest in enterprises between countries.ⓘ Net Direct Investment [NDI]			+10% -10%
✖Net Portfolio Investment captures the net flow of capital between countries from purchases and sales of securities, excluding direct investment and reserve assets.ⓘ Net Portfolio Investment [NPI]			+10% -10%
✖Asset Funding refers to the acquisition of financial assets, such as stocks, bonds, or other securities reflecting inflows of funds into the economy from abroad.ⓘ Asset Funding [A]			+10% -10%
✖Errors and Omissions represent discrepancies that arise when recorded transactions do not balance due to data inaccuracies or unrecorded transactions.ⓘ Errors and Omissions [E]			+10% -10%

✖Balance of Financial Account is the difference between all money flowing into the country in a particular period of time (e.g., a quarter or a year) and the outflow of money to the rest of the world.ⓘ Balance of Financial Account [BOF]

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Balance of Financial Account Solution

STEP 0: Pre-Calculation Summary

Formula Used

Balance of Financial Account = Net Direct Investment+Net Portfolio Investment+Asset Funding+Errors and Omissions
BOF = NDI+NPI+A+E
This formula uses 5 Variables

Variables Used

Balance of Financial Account - Balance of Financial Account is the difference between all money flowing into the country in a particular period of time (e.g., a quarter or a year) and the outflow of money to the rest of the world.
Net Direct Investment - Net Direct Investment is measures the net flow of capital resulting from the acquisition of lasting interest in enterprises between countries.
Net Portfolio Investment - Net Portfolio Investment captures the net flow of capital between countries from purchases and sales of securities, excluding direct investment and reserve assets.
Asset Funding - Asset Funding refers to the acquisition of financial assets, such as stocks, bonds, or other securities reflecting inflows of funds into the economy from abroad.
Errors and Omissions - Errors and Omissions represent discrepancies that arise when recorded transactions do not balance due to data inaccuracies or unrecorded transactions.

STEP 1: Convert Input(s) to Base Unit

Net Direct Investment: 60000 --> No Conversion Required
Net Portfolio Investment: 35000 --> No Conversion Required
Asset Funding: 30000 --> No Conversion Required
Errors and Omissions: 15000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

BOF = NDI+NPI+A+E --> 60000+35000+30000+15000

Evaluating ... ...

BOF = 140000

STEP 3: Convert Result to Output's Unit

140000 --> No Conversion Required

FINAL ANSWER

140000 <-- Balance of Financial Account

(Calculation completed in 00.004 seconds)

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Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

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BMS College of Engineering (BMSCE), Bangalore

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< International Finance Calculators

Balance of Financial Account

LaTeX Go Balance of Financial Account = Net Direct Investment+Net Portfolio Investment+Asset Funding+Errors and Omissions

Covered Interest Rate Parity

LaTeX Go Forward Exchange Rate = (Current Spot Exchange Rate)*((1+Foreign Interest Rate)/(1+Domestic Interest Rate))

International Fisher Effect using Interest Rates

LaTeX Go Change in Exchange Rate = ((Domestic Interest Rate-Foreign Interest Rate)/(1+Foreign Interest Rate))

International Fischer Effect using Spot Rates

LaTeX Go Change in Exchange Rate = (Current Spot Exchange Rate/Spot Rate in Future)-1

Balance of Financial Account Formula

LaTeX Go

Balance of Financial Account = Net Direct Investment+Net Portfolio Investment+Asset Funding+Errors and Omissions
BOF = NDI+NPI+A+E

What is Balance of Financial Account?

The financial account is a large component of the balance of payments. It adds to the balance of payments when it's positive, or when foreign money is flowing into the country to purchase assets. It subtracts from the balance of payments when domestic money is flowing out of the country to purchase foreign assets.

How to Calculate Balance of Financial Account?

Balance of Financial Account calculator uses Balance of Financial Account = Net Direct Investment+Net Portfolio Investment+Asset Funding+Errors and Omissions to calculate the Balance of Financial Account, The Balance of Financial Account is the sum of net direct investments, net portfolio investments, asset funding, and errors/omissions. Balance of Financial Account is denoted by BOF symbol.

How to calculate Balance of Financial Account using this online calculator? To use this online calculator for Balance of Financial Account, enter Net Direct Investment (NDI), Net Portfolio Investment (NPI), Asset Funding (A) & Errors and Omissions (E) and hit the calculate button. Here is how the Balance of Financial Account calculation can be explained with given input values -> 140000 = 60000+35000+30000+15000.

FAQ

What is Balance of Financial Account?

The Balance of Financial Account is the sum of net direct investments, net portfolio investments, asset funding, and errors/omissions and is represented as BOF = NDI+NPI+A+E or Balance of Financial Account = Net Direct Investment+Net Portfolio Investment+Asset Funding+Errors and Omissions. Net Direct Investment is measures the net flow of capital resulting from the acquisition of lasting interest in enterprises between countries, Net Portfolio Investment captures the net flow of capital between countries from purchases and sales of securities, excluding direct investment and reserve assets, Asset Funding refers to the acquisition of financial assets, such as stocks, bonds, or other securities reflecting inflows of funds into the economy from abroad & Errors and Omissions represent discrepancies that arise when recorded transactions do not balance due to data inaccuracies or unrecorded transactions.

How to calculate Balance of Financial Account?

The Balance of Financial Account is the sum of net direct investments, net portfolio investments, asset funding, and errors/omissions is calculated using Balance of Financial Account = Net Direct Investment+Net Portfolio Investment+Asset Funding+Errors and Omissions. To calculate Balance of Financial Account, you need Net Direct Investment (NDI), Net Portfolio Investment (NPI), Asset Funding (A) & Errors and Omissions (E). With our tool, you need to enter the respective value for Net Direct Investment, Net Portfolio Investment, Asset Funding & Errors and Omissions and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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