When a Foreigner Buys Shares in a U

question 101

Multiple Choice

When a foreigner buys shares in a U.S. company, the transaction

• A) is registered as a credit in the capital account, and it decreases foreign private assets in the United States.
• B) is registered as a debit in the current account, and it decreases private U.S. assets abroad.
• C) is registered as a credit in the capital account, and it increases foreign private assets in the United States.
• D) is registered as a debit in the capital account, and it increases private U.S. assets abroad.

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Definitions:

Excess Zone

A situation where desired or necessary levels of something, such as production or capacity, are exceeded, leading to inefficiency or waste.

Directive Communication

A style of communication that focuses on clear, concise instructions and expectations, often used in leadership.

Assertiveness

The quality of being self-assured and confident without being aggressive, in expressing one’s rights, needs, and desires.

Communication Style

The way in which individuals express themselves and interact with others, which can vary greatly from person to person.