A Friend Claims That the United States Is a Net

question 16

Multiple Choice

A friend claims that the United States is a net international debtor.The best way of testing this claim is to see whether

• A)U)S. foreign liabilities exceeded U.S. foreign income.
• B)U)S. receipts from foreign assets exceeded U.S. payments to foreign owners of U.S. assets.
• C)U)S. official reserve assets were positive or negative.
• D)the United States ran a balance of payments surplus or deficit last year.

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Definitions:

Diversified Portfolio

An investment strategy that spreads investments across various assets to reduce risk.

ETFs

Exchange-Traded Funds, which are investment funds traded on stock exchanges, much like stocks.

Turnover Ratio

A measure of how frequently investments or inventory are bought and sold within a given period, indicating the liquidity or activity level.

Average Daily Assets

The mean value of assets held over a specified period, calculated by taking the sum of daily asset values and dividing by the number of days in the period.