Foreign Saving Is Used for Domestic Investment When Foreigners Engage

question 5

Multiple Choice

Foreign saving is used for domestic investment when foreigners engage in

• A)foreign direct investment.
• B)foreign portfolio investment.
• C)either foreign direct investment or foreign portfolio investment.
• D)None of the above is correct.

---

Definitions:

Contra Account

An account used in the general ledger to reduce the value of a related account without adjusting the original account directly.

Sales Returns

Transactions where customers return previously purchased merchandise, resulting in a refund or credit.

Accumulated Depreciation

represents the total amount of depreciation expense that has been recorded for an asset since it was acquired.