Which account records the flow of payments between countries to finance the acquisition of assets such as stocks, bonds, and real estate?

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The financial account records cross-border changes in ownership of financial assets and liabilities, including investments in stocks, bonds, and cross-border real estate purchases. When countries finance the acquisition of these assets, those payments show up here as net financial flows between residents and non-residents.

The current account covers trade in goods and services and income transfers, not the financing of asset acquisitions. The capital account handles capital transfers and the acquisition/disposal of non-produced, non-financial assets, which is a different kind of movement. The term “trade balance” is a sum within the current account, not a separate mechanism for financing asset purchases.

So, the flow of payments to finance buying assets like stocks, bonds, and real estate is captured in the financial account.