When an Australian Investor Buys a Bond Issued in a Foreign

question 74

Multiple Choice

When an Australian investor buys a bond issued in a foreign country, ceteris paribus, the:

• A)balance on the capital account decreases.
• B)balance on the current account decreases.
• C)balance on the financial account decreases.
• D)balance of trade on goods and services decreases.

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Definitions:

World Violence

Acts of aggression and conflict that occur across different regions of the globe.

Individual Respect

The regard and consideration shown towards an individual, recognizing their value and worth.

Aggressive Responding

The act of reacting to stimuli or situations with behaviors that are intended to harm or assert dominance over someone else.

Norms

Socially accepted rules that dictate the expected behavior in specific situations, guiding individual actions within a group.