One reason the Chinese buy a great deal of U.S. government debt is because:
A) they have dollars left over from the sale of their goods to the U.S. and want to buy something dollar denominated.
B) the risk involved is lower for U.S. government bonds than for any other government bond in the world.
C) the rate of return for U.S. government bonds is higher than any other investment.
D) owning US debt is a sign of economic prosperity for China.
Correct Answer:
Verified
Q22: The investment when a firm runs part
Q23: Champlain College in Vermont runs a satellite
Q24: Ford opens a parts manufacturing plant in
Q25: An advantage of foreign direct investment versus
Q25: Portfolio investment can generally travel across borders
Q26: Alan bought 20 shares of Labatt's stock
Q28: IBM buys treasury bonds from the UK
Q29: Foreign direct investment is when:
A) a firm
Q31: If a country has a net capital
Q32: Josh runs a landscaping business in Vermont
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents