Other Things Remaining Constant,higher Trade Deficits in the U

question 87

Multiple Choice

Other things remaining constant,higher trade deficits in the U.S.will lead to:

• A)U.S citizens buying greater foreign securities.
• B)an increase in domestic savings in the U.S.
• C)a decrease in the demand for U.S.dollars.
• D)an increase in funds from abroad.
• E)an increase in the standard of living of the U.S residents.

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Definitions:

Postage Stamps

Small pieces of paper issued by a government or an official postal administration, denoted with a specified value, and used to pay for the shipment of mail.

Certificates of Deposit

Time-bound deposit accounts offered by banks that pay interest and have a fixed maturity date.

Money Market Funds

Investment funds that invest in short-term debt securities, providing investors with high liquidity and minimal risk.

Remittance Advice

A document sent by a customer to a business, indicating that an invoice has been paid, often accompanying the payment.