An Increase in United States Net Foreign Direct Investment Would

question 256

Multiple Choice

An increase in United States net foreign direct investment would occur if

• A)United States citizens have increased the value of foreign stocks and bonds they own.
• B)United States citizens have increased their building or purchasing of facilities in foreign countries.
• C)net foreign investment increases.
• D)net capital flows decrease.

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Definitions:

Bond Premium

The amount by which the selling price of a bond exceeds its face value, often resulting from interest rates that are lower than the bond's coupon rate.

Market Rate

The prevailing price or interest rate available in the open market for goods, services, or securities.

Nominal Rate

The interest rate stated on a financial product or agreement without adjustment for inflation or other factors that affect the real value of returns.

Stated Value

Stated value refers to an arbitrary value assigned to the no-par value stock by the board of directors of a company, used for accounting purposes.