A Net Capital Inflow Occurs in Open Economies Where Investment

question 24

Multiple Choice

A net capital inflow occurs in open economies where investment is _______ national savings.

• A) higher than
• B) lower than
• C) equal to
• D) either higher or lower than

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Definitions:

GIC

Stands for Guaranteed Investment Certificate, a secure investment that promises to return your principal plus interest.

Investment Savings

Funds set aside in financial instruments or accounts with the goal of generating income or profit over time.

Simple Interest

Interest earned only on the original principal amount, without compounding.

Daily Closing Balance

The amount of money in an account at the end of each business day, after all transactions have been accounted for.