Which of the Following Is Not True with Regard to Direct

question 4

Multiple Choice

Which of the following is not true with regard to direct investments?

• A)U.S.direct investments abroad and foreign direct investments in the U.S.grew very rapidly from 1980 to 2017
• B)the amount of U.S.direct investments abroad is similar to the amount of foreign direct investments in the U.S.
• C)U.S.direct investments in Canada are higher than in Europe
• D)U.S.private holdings of foreign long-term securities grew very rapidly from 1980 to

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Definitions:

Investment Account

An account held at a financial institution that is used to buy and hold various investment assets, like stocks, bonds, mutual funds, and ETFs, often used for long-term financial goals.

Equity Method

An accounting technique used to record the investments made in other companies, reflecting the investor's proportional share of the investee's net income or loss.

Undervalued Inventory

Undervalued inventory occurs when the recorded cost of inventory is less than its current market value, potentially misstating a company's financial position.

Carrying Value

The book value of an asset or liability on a company's balance sheet, calculated as the original cost minus accumulated depreciation or amortization.