A component of the balance of payments that reflects investments domestic entities make in foreign entities and investments foreign entities make in domestic entities. It includes direct investments, portfolio investments, other investments, and the reserve account.

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The CFA Institute Investment Foundations Program covers the essentials of finance, ethics, and investment roles, providing a clear understanding of the global investment industry.


1. A component of the balance of payments that reflects investments domestic entities make in foreign entities and investments foreign entities make in domestic entities. It includes direct investments, portfolio investments, other investments, and the reserve account.