Which account specifically deals with international monetary flows of investments?

The financial account is specifically concerned with international monetary flows of investments. It includes transactions that involve financial assets and liabilities, such as investments in foreign stocks, bonds, and real estate. The account captures both direct investments, where investors own a significant share in a foreign entity, and portfolio investments, which are typically smaller and involve buying securities in foreign markets.

This account provides a detailed view of how funds are transferred into and out of a country as a result of these financial dealings, distinguishing itself from other accounts such as the current account, which focuses on trade in goods and services, or the capital account, which generally covers non-financial assets and capital transfers. The transfer account typically manages the movement of unilateral transfers, such as remittances and aid, rather than investment flows.

Understanding the financial account's role in tracking investment transactions is crucial for analyzing a country's economic interactions with the rest of the world, shedding light on its position in the global financial system.