One of the Largest Foreign Portfolio Investments in the United

question 69

Multiple Choice

One of the largest foreign portfolio investments in the United States comes from:

• A) U.S. purchases of Chinese consumption goods.
• B) U.S. purchases of Chinese government debt.
• C) Chinese purchases of U.S. government debt.
• D) Chinese purchases of U.S. capital goods.

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Definitions:

Initial Investments

The initial amount of money used to purchase an asset or start a business.

Partnership

A partnership is a legal form of business operation between two or more individuals who share management and profits.

Generally Accepted Accounting Principles

The standard framework of guidelines for financial accounting used in any given jurisdiction.

Salary Allowance

A mechanism for dividing earnings of a partnership based on personal services provided by the partners (not an expense).