The US Experienced Large Current Account Deficits in the 1980s and and Much

question 35

Multiple Choice

The U.S. experienced large current account deficits in the 1980s and much larger deficits more recently (since the mid-1990s) . These deficits indicate that the U.S. did not

• A) consume more than it produced.
• B) sell financial assets.
• C) borrow large amounts of money from foreign residents.
• D) run a surplus in the financial account.
• E) None of these - the U.S. did all of these.

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Definitions:

Equity Of Redemption

The right of a mortgagor to reclaim property by paying off the full amount of the mortgage plus any accrued interest and costs before foreclosure.

Home Equity Loan

A line of credit made available to homeowners based on the value of the property over and above any existing mortgages.

Court Action

Legal proceedings initiated in a court of law where a plaintiff brings a lawsuit against a defendant.

Repossessed

The act of a lender taking back an object, typically a vehicle or property, from the borrower due to failure to make the agreed-upon payments.