In the U.S. balance of payments account for a certain year, a positive number in the ﬁnancial account means a
A) net buildup of assets held by the U.S.
B) net reduction in the ownership of assets by U.S. interests.
C) buildup of total foreign debt.
D) reduction of total foreign debt.

Question

Quizplus · Accepted Answer

A positive number in the financial account typically indicates a net inflow of investment into the country, meaning that the country is selling more assets to foreigners than it is buying from them. This results in a net reduction in the ownership of assets by U.S. interests, as the country acquires foreign assets or reduces its liabilities.

In the US Balance of Payments Account for a Certain Year, a Year