Most Foreign Assets in the U

question 6

Multiple Choice

Most foreign assets in the U.S.are ___________; most U.S.assets abroad are ________.

• A) direct investment; direct investment
• B) direct investment; foreign securities
• C) U.S. securities; direct investment
• D) U.S. securities; foreign securities

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Definitions:

Par

The nominal or face value of a bond, stock, or coupon as indicated on a certificate or instrument.

Stockholders' Equity

The ownership stake of shareholders in a corporation's assets, remaining after all liabilities have been subtracted.

Paid-in Capital

Funds raised by a company through the issuance of shares to investors, exceeding the par value of the shares.

Par Value

The nominal or face value of a bond, stock, or coupon as indicated on a certificate or bond itself, often used as a legal capital measurement.