When a USInvestor Buys a Bond Issued in a Foreign Country

question 5

Multiple Choice

When a U.S.investor buys a bond issued in a foreign country

• A)the balance on the capital account decreases.
• B)the balance on the current account decreases.
• C)the balance on the financial account decreases.
• D)the balance of trade decreases.

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Definitions:

Hindbrain

The rearmost segment of the brain, including structures such as the cerebellum and medulla oblongata, involved in regulating basic life functions.

Cerebellum

A region of the brain that plays an important role in motor control, and it may also be involved in some cognitive functions such as attention and language as well as in regulating fear and pleasure responses.

Interneurons

A type of neuron located within the central nervous system that acts as a link between sensory neurons and motor neurons, processing information.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons and conduct them toward the cell body.