Based on the following information, what is the balance on the financial account? Exports of goods and services = $5 billion Imports of goods and services = $3 billion Net income on investments = - $2 billion Net transfers = - $2 billion Increase in foreign holdings of assets in the United States = $4 billion Increase in U. S. holdings of assets in foreign countries = - $1 billion

3 billion

Explanation:

the financial account will be the cash inflow less the cash outflow:

Increase in foreign holdings of assets in the United States = $4 billion Increase in U. S. holdings of assets in foreign countries = - $1 billion

4 billion of dollar enter the US from aboard while 1 billion left the country with destination aboard in total the financial account will be:

4 billion - 1 billion = 3 billion