The United States Regularly Runs a Trade and Therefore _

question 113

Multiple Choice

The United States regularly runs a trade and therefore _ _.

• A) surplus; loanable funds flow out of the United States
• B) deficit; loanable funds are sent to the United States
• C) deficit; loanable funds flow out of the United States
• D) surplus; loanable funds are sent to the United States

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Definitions:

Discount Rate

The interest rate used to determine the present value of future cash flows or to discount future obligations.

Maturity

The predetermined date on which a financial instrument, loan, or security reaches its final payment, at which point the principal amount must be repaid.

Zero-Coupon Bond

A debt security that doesn't pay periodic interest, sold at a discount from its face value, and repays the face value at maturity.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, considering both the interest payments and the capital gain or loss.