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Which of the Following Is TRUE About Current Cost Method

Question 69

Multiple Choice

Which of the following is TRUE about current cost method and market value method?


A) They are used by the BEA to place current values on foreign indirect investments.
B) These methods lead to the same valuations.
C) Based on the current cost method, the BEA's 2015 estimate of U.S. net foreign wealth was -$7,280.6 billion.
D) The market value cost method is preferred by the BEA.
E) Foreign direct investments of the U.S. are valued at their original purchase price.

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