If a French citizen places $100,000 in an Italian bank and an Italian citizen places $40,000 in a French bank, "net international bank lending" increased by __________.

Question

Quizplus · Accepted Answer

Net international bank lending is calculated by subtracting the total amount lent to foreigners by a country's banks from the total amount its citizens have deposited in foreign banks. In this case, the Italian bank receives $100,000 from a French citizen, and the French bank receives $40,000 from an Italian citizen. Therefore, the net increase is $100,000 - $40,000 = $60,000.

If a French Citizen Places $100,000 in an Italian Bank