If the USPurchased $100 Billion in Foreign Assets and Foreigners Purchased $50

question 5

Multiple Choice

If the U.S.purchased $100 billion in foreign assets and foreigners purchased $50 billion of U.S.assets,which of the following is true?

• A) Net exports equal -$50 billion.
• B) Exports total $100 billion.
• C) There is a trade deficit.
• D) Net exports equal $50 billion.
• E) Imports total $50 billion.

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Definitions:

Negotiable

Capable of being bought, sold, or transferred to another party, often used to describe financial instruments.

Pay To

A directive on checks or drafts indicating to whom the payment is to be made.

Insurer's Name

Refers to the legal name of the company or entity which provides insurance coverage to policyholders.

Order Instrument

A financial document that is payable to a specific person or entity named on the document, necessitating endorsement for transfer.