ABSTRACT
It should be pointed out that in no country outside the United States has the system of flow of funds been put in operation in a manner similar to that adopted by the federal system. A few studies which resemble the flow of funds system have not only less detail, but are also closely connected or actually combined with the national accounts system of the country. The flow of funds accounts shows distinctly the purchase and sale of existing assets, since such transactions involve receipt and payment of money or decrease (increase) in credit (debit) balances of the transactors. The flow of funds system of the United States categorically assumes an economy with a financial system by and through which various transactors are encouraged or discouraged to do or undo various economic activities. As in the US flow of funds system, the national transactions accounts also exclude from consumers sector the lessorship activities of households in their capacity as houseowners.
