In 2006, the U

question 74

Multiple Choice

In 2006, the U.S. net international investment position was $2.5 trillion. This means that in 2006:

• A) the U.S. was a net lender.
• B) foreign governments made $2.5 trillion billion in investments in the U.S.
• C) the U.S. government made $2.5 trillion billion in investments abroad.
• D) the U.S. was a net borrower.

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Definitions:

Return

The income generated from an investment, expressed as a percentage of the original investment cost.

Discounted Payback

A payback period calculation that takes into account the time value of money by discounting each of the cash flows from the project at a particular rate before it sums them to determine the break-even point.

Payback Period

The time required for the return on an investment to "pay back" the sum of the original investment, commonly used as a measure of investment risk.

Profile

A description or analysis of the characteristics, qualities, or activities of a person, organization, or thing.