What Does Net Capital Outflow Measure

question 155

Multiple Choice

What does net capital outflow measure?

• A) foreign assets held by domestic residents minus domestic assets held by foreign residents
• B) the imbalance between the amount of domestic assets bought by domestic residents and the amount of foreign assets bought by foreigners
• C) the imbalance between the amount of foreign assets bought by domestic residents and the amount of domestic goods and services sold to foreigners
• D) domestic assets held by foreigners minus foreign assets held by domestic residents

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Definitions:

Establishing

The process of setting up or founding something, such as a new business, system, or set of rules.

Replenishing

The act of refilling or restocking to maintain an adequate level of supplies or inventory.

Voucher System

A control mechanism in accounting that uses vouchers as evidence for transactions before they are posted to accounts, enhancing financial accuracy and integrity.

Prenumbered Voucher

A control mechanism used in accounting to ensure that all transactions are recorded and processed in a sequential manner, mitigating errors and fraud.