________ Are Purchases of Foreign Financial Assets for a Purpose

question 112

Multiple Choice

________ are purchases of foreign financial assets for a purpose other than control.

• A) Foreign direct investments
• B) Global business investments
• C) Foreign portfolio investments
• D) Indirect investments

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Definitions:

Trade Deficit

A situation where a country's imports exceed its exports in value.

Debts Owed

Financial obligations or liabilities that a person or entity is required to repay to creditors.

Capital Account

A national account that records transactions involving the acquisition and disposal of assets, such as direct investments, portfolio investments, and financial derivatives between residents and non-residents.

Financial Account

A component of a country's balance of payments that records transactions involving the purchase and sale of foreign assets and liabilities.