When U.S. residents purchase foreign assets,
A) there is an outflow of funds from abroad and this is recorded as a negative item in the current account.
B) there is an outflow of funds from the U.S. and this is recorded as a negative item in the capital account.
C) there is an outflow of funds from abroad and this is recorded as a positive item in the current account.
D) there is an outflow of funds from abroad and this is recorded as a positive item in the capital account.
Correct Answer:
Verified
Q126: The current account deficit and capital account
Q127: How has rising productivity in the United
Q128: Suppose there is an increased demand from
Q129: Free-floating exchange rates are determined by the
A)
Q130: What are the three broad categories of
Q132: An exchange rate system in which governments
Q133: A system in which some governments or
Q134: Consider only the flow of funds spent
Q135: Under a system of free-floating exchange rates,
Q136: Managed floating is typically undertaken by a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents