If a Japanese Citizen Invests in the Australian Stock Market

question 41

Multiple Choice

If a Japanese citizen invests in the Australian stock market, the transaction would show up on the capital account of ________.

• A) Japan
• B) Australia
• C) neither Japan nor Australia because it is a current account item
• D) both Japan and Australia

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Definitions:

Yield to Maturity

Yield to maturity is the total return anticipated on a bond if it is held until it matures, including all interest payments and any gain or loss if the bond was purchased at a discount or premium to its face value.

Semiannually

Semiannually refers to an occurrence that happens twice a year, typically at six-month intervals.

Yield to Maturity

The total return anticipated on a bond if it is held until the date it matures.

Annual Coupon

The annual interest payment received by bondholders, expressed as a percentage of the bond's face value.