If the U.S. has a capital account surplus, it means that
A) foreigners purchase more of U.S. assets than U.S. residents purchase foreign assets.
B) U.S. exports of capital goods exceed its imports of capital goods.
C) U.S. residents purchase more foreign assets than foreigners purchase U.S. assets.
D) the quantity supplied of U.S. financial assets exceed the quantity demanded.

Question

Quizplus · Accepted Answer

A capital account surplus means that there is a net inflow of capital from foreign investors, indicating that they are purchasing more U.S. assets (such as stocks, bonds, and real estate) than U.S. residents are purchasing foreign assets. This leads to an increase in the U.S. dollar's value and can impact the balance of trade.

If the US Has a Capital Account Surplus, It Means That