Borrowing from Another Country That Occurs When the Country Has

question 39

True/False

Borrowing from another country that occurs when the country has a trade deficit and its citizens sell real and financial assets to foreigners is called a capital inflow.

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Definitions:

Profit

The profit achieved when the revenue from a business operation is greater than the expenses, costs, and taxes required for the operation.

Treasury Bond

Debt obligation of the federal government with original maturity between 10 and 30 years.

Liquidate

To convert assets into cash or cash equivalents by selling them on the market.

Spot Price

The current market price at which a particular asset, such as a commodity, currency, or security, can be bought or sold for immediate delivery.