... is less than in then it is a surplus.) If a country is sending out more money for shopping, gifts and interest payments than the foreigners are sending back the result is that those foreigners have money that they are going to put somewhere. Either they hold the money or they purchase an asset or investment with it. These movements of money come under the heading of Capital & Financial. So in general whatever movement of money isn't put under the heading of Current Account goes instead under the heading of Capital & Financial. Forgetting about the money for a moment, if some foreign country sends us stuff they expect something in return. If they don't want the stuff that we make (our goods and services) then they will want to buy some of our land or our companies or some bonds or just lend the money through the banks ...

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