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What is meant by International Flow of Funds?
Flow of funds is defined by a set of accounts which is used to follow flow of money amongst various sectors of an economy. The account which are being used for this purpose, analyzes economic data throughout different sectors like households, business or farms for borrowing, lending and different investments.
These FOF accounts are used worldwide for a primary purpose which is an economy-wide performance indicator. Data collected are used to tally against previous data from these accounts to analyze financial strength of economy at that time frame and to see where economy might go in the future!
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