Consider Only the Flow of Funds Spent on Acquiring Assets

question 141

Multiple Choice

Consider only the flow of funds spent on acquiring assets. Which of the following is true if the U.S. has a net capital outflow of funds?
I. Foreign purchases of U.S. assets are greater than U.S. residents' purchases of foreign assets.
II. Foreign purchases of U.S. assets are less than U.S. residents' purchases of foreign assets.
III. There is a capital account surplus.
IV. There is a capital account deficit.

• A) I and III
• B) I and IV
• C) II and III
• D) II and IV

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Definitions:

Baked Potato

A culinary dish prepared by baking a potato in an oven or over a fire until it is soft inside with a crispy skin.

Collective Unconscious

A concept by Carl Jung referring to the part of the unconscious mind which is derived from ancestral memory and experience and is common to all humankind.

Ancestral Memory

The theory that individuals inherit memories and experiences of their ancestors.

Preconscious

Refers to the part of the mind that contains thoughts, memories, and feelings that are not currently in conscious awareness but can easily be brought to consciousness.