Countries with Negative Foreign Saving Typically

question 9

Multiple Choice

Countries with negative foreign saving typically:

• A) have a net inflow of savings from abroad that finances domestic investments.
• B) have a net inflow of savings from abroad that offsets domestic savings.
• C) are financing investment projects in countries with current account deficits.
• D) are financing investment projects in countries with current account surpluses.

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Definitions:

Boers

Descendants of the Dutch-speaking settlers of the Cape Colony in southern Africa during the 17th and 18th centuries, known for their role in the Boer Wars against British rule.

Republic of the Transvaal

A historical 19th-century Boer state in Southern Africa that gained independence from the United Kingdom in 1852 until its annexation after the Second Boer War.

Orange Free State

A historical Boer state in southern Africa that existed from 1854 to 1902, becoming a British colony thereafter.

Suez Canal

A man-made waterway in Egypt, opened in 1869, connecting the Mediterranean Sea to the Red Sea, significantly reducing travel time for maritime trade between Europe and Asia.