A Debit in the U

question 23

Multiple Choice

A debit in the U.S.current account would be represented by

• A) earnings on U.S. investments abroad flowing into the United States.
• B) gifts that Americans make to the poor in Africa.
• C) Chinese investors purchasing the securities of the U.S. government.
• D) exports of Boeing jetliners to South Korea.

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Definitions:

Simple Interest

Interest calculated only on the principal amount, or on that portion of the principal amount which remains unpaid.

Savings Accounts

Bank accounts that earn interest over time, allowing individuals to deposit funds for future use.

Deposit

A sum of money placed in an account or paid as a part of a transaction to demonstrate commitment or reserve something.

Present Values

The valuation at the moment of money expected in the future or regular cash flows, when discounted using a certain rate of return.