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:

Phospholipids

A class of lipids that are a major component of all cell membranes, consisting of two fatty acids, a phosphate group, and a glycerol molecule.

Fatty Acids

Long chains of hydrocarbon molecules with a carboxylic acid group, which are components of lipids and play roles in energy storage and cellular structure.

Potassium Ion

A positively charged ion (K+) essential for various biological processes, including nerve transmission and muscle contraction.

Simple Diffusion

The movement of molecules from an area of higher concentration to an area of lower concentration without the need for energy input or assistance of membrane proteins.