When U.S. Residents Purchase Foreign Assets

question 179

Multiple Choice

When U.S. residents purchase foreign assets,

• A) there is an outflow of funds from abroad and this is recorded as a negative item in the current account.
• B) there is an outflow of funds from the U.S. and this is recorded as a negative item in the capital account.
• C) there is an outflow of funds from abroad and this is recorded as a positive item in the current account.
• D) there is an outflow of funds from abroad and this is recorded as a positive item in the capital account.

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Definitions:

Dawes Severalty Act

A 19th-century U.S. law that aimed to assimilate Native Americans into American society by distributing land to individuals rather than tribes.

Mainstream American Society

The prevailing cultural norms, values, and practices considered typical or standard in the United States.

Supreme Court

The highest federal court in the United States, which has ultimate appellate jurisdiction over all federal and state court cases that involve a point of federal law.

Fourteenth Amendments

An amendment to the U.S. Constitution, ratified in 1868, that grants citizenship to all persons born or naturalized in the United States and ensures equal protection under the laws.