The financial account is one of the two major components under the financial and capital account. The major components of the financial account are: -direct investment; -portfolio investment; - other investment; -reserve assets. The financial account records an economy’s transaction in external financial assets and liabilities. The major classifications in the financial account are: - Functional type of investment (direct investment, portfolio investment, other investment, and reserve assets); - Assets (residents’ financial claims on non resident) and liabilities non resident financial claims on resident); - Instrument of investment (e.g. equity, debt); - Sector of the domestic transactor (general government, monetary authorities, banks and other sectors).