The Balance of Payments Account Which Records Foreign Investment in the United

question 37

Multiple Choice

The balance of payments account which records foreign investment in the United States and U.S. investments abroad is the

• A) None of the above because foreign investment in the United States is included in one account and U.S. investment abroad is included in another account
• B) current account
• C) official settlements account
• D) capital and financial account

---

Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation remaining after deducting its liabilities, representing the ownership interest of the shareholders.

Dividend Yield

Dividend Yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price, indicating the return on investment from dividends alone.

Cash Dividends Per Share

The amount of cash distributed to shareholders per share out of a company's earnings.

Market Price

The market value at which you can currently buy or sell an asset or service.