When Foreigners Purchase U

question 154

Multiple Choice

When foreigners purchase U.S. assets, there is an inflow of funds from abroad and this is recorded as a

• A) positive item in the capital account.
• B) positive item in the current account.
• C) negative item in the capital account.
• D) negative item in the current account.

---

Definitions:

Secondary Research

The analysis and interpretation of existing data or information that was collected by someone else, as opposed to primary research where data is collected firsthand.

Historical Documents

Original records and texts that pertain to past events, serving as evidence or sources of history.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Variable

An element, feature, or factor that is liable to vary or change; used in statistics and research to measure and analyze differences.