Consider Only the Flow of Funds Spent on Acquiring Assets

question 76

Multiple Choice

Consider only the flow of funds spent on acquiring assets. Which of the following is true if the U.S. has a net capital inflow of funds?
I. Foreign purchases of U.S. assets are greater than U.S. residents' purchases of foreign assets.
II. Foreign purchases of U.S. assets are less than U.S. residents' purchases of foreign assets.
III. There is a capital account surplus.
IV. There is a capital account deficit.

• A) I and III
• B) I and IV
• C) II and III
• D) II and IV

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Definitions:

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A suburb of Philadelphia in Delaware County, Pennsylvania, known for its diverse community and rich cultural history.

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The alignment of organizational strategies, resources, and capabilities with the external environment to achieve long-term objectives.

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The utmost or maximum degree or amount of something.