Assume an Australian FI has US$100 000 in assets and US$200 000 in liabilities.Further, the FI has bought US$40 000 and sold US$20 000.What is the net foreign asset of the Australian FI?
A)-US$100,000
B)-US$80,000
C)US$80,000
D)US$100,000

Question

Quizplus · Accepted Answer

The net foreign asset is calculated as assets minus liabilities. Here, the net foreign asset is US$100,000 (assets) - US$200,000 (liabilities) = -US$100,000. The buying and selling of US$40,000 and US$20,000 respectively do not affect the net foreign asset calculation.

Assume an Australian FI Has US$100 000 in Assets and US$200