Which One of the Following Statements Is FALSE

question 59

Multiple Choice

Which one of the following statements is FALSE?

• A) The United States had accumulated substantial foreign wealth by the early 1980s.
• B) The 1980s witnessed a sustained current account deficit of proportions unprecedented in the twentieth century opened up.
• C) In 1987, the country became a net debtor to foreigners for the first time since World War I.
• D) U.S. foreign debt has continued to grow and now stands at 25 percent of GNP.
• E) The U.S. foreign debt was paid off in the 1990s, allowing the U.S. to attain a current account surplus. However, the deficit has returned in recent years.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold, determined by supply and demand in the marketplace.

Required Return

The minimum expected return by investors for providing capital to a particular investment, taking into account the risk level.

Market Value

The cost at which an asset or service can presently be transacted in the market.

Taxable

Pertains to financial income or transactions that are subject to taxation by governmental authorities.