The United States has experienced a favorable situation in world financial markets. What is it?
A) The United States has huge net external wealth and is able to control many foreign corporations, banks, and governments as a result.
B) Even though the United States has huge net external debt, it has benefited from a 1.5% gain in interest differential and an additional 2% capital gain on its net debt/wealth.
C) Other nations deposit their funds in U.S. banks, making them available for U.S. borrowers.
D) Politically the United States is very powerful, and most international financial organizations want good relationships with it, making financial dealings more favorable to the United States.
Correct Answer:
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