Stacey, a U

question 328

Multiple Choice

Stacey, a U.S. citizen, buys a bond issued by an Italian pasta manufacturer.

• A)This purchase is foreign direct investment. By itself it increases U.S. net capital outflow.
• B)This purchase is foreign direct investment. By itself it decreases U.S. net capital outflow.
• C)This purchase is foreign portfolio investment. By itself it increases U.S. net capital outflow.
• D)This purchase is foreign portfolio investment. By itself it decreases U.S. net capital outflow.

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Definitions:

Policies

Guidelines or rules established by organizations or governments to direct actions and decisions in specific areas.

Personal Assets

Items of value owned by an individual, including tangible assets like property and cars, and intangible assets like stocks and bonds.

Savings Account

is a deposit bank account that earns interest, designed for individuals to save money over time.

Investment Account

A financial account that holds securities, such as stocks, bonds, or mutual funds, for investment purposes.