In the Balance of Payments Accounts, a Net Importer of Capital

question 8

Multiple Choice

In the balance of payments accounts, a net importer of capital is a nation that

• A) sells more goods in foreign countries than it imports.
• B) must be running a trade surplus.
• C) sells more assets to individuals in other countries than the assets it buys from them.
• D) buys more assets from individuals in other countries than the assets it sells to them.

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Definitions:

Treasury Stock

Treasury stock consists of shares that were issued and subsequently reacquired by the issuing corporation, reducing the amount of outstanding stock on the open market.

Voluntary Restriction

Voluntary restriction refers to limitations or constraints that an organization chooses to impose on itself, often related to its operations or the use of its assets, not mandated by external regulations.

Retained Earnings

The accumulated net income of a company that is retained and not distributed to shareholders as dividends.

Net Loss

The result when a company's expenses exceed its revenues during a specific period, indicating negative profitability.