Purchases of Foreign Assets by U

question 72

Multiple Choice

Purchases of foreign assets by U.S. residents are tabulated in the U.S. balance of payments as a:

• A) capital inflow.
• B) capital outflow.
• C) current account outflow.
• D) unilateral transfer.

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Definitions:

360-Day Year

The 360-day year is used in financial calculations to simplify interest calculations, assuming each month has 30 days.

Maturity Value

The total amount payable to an investor at the end of a fixed term investment, including the principal and any accrued interest.

Days' Sales in Receivable

A financial metric that indicates the average number of days it takes for a company to collect payment after a sale has been made, illustrating the liquidity and efficiency of the company's receivables.

Financial Records

Documents and files that track the financial activities of a person or entity, providing a basis for financial planning and decision-making.