U.S. Investment Is Financed from

question 33

Multiple Choice

U.S. investment is financed from

• A) private saving, government budget surpluses, and borrowing from the rest of the world.
• B) private saving, government budget deficits, and borrowing from the rest of the world.
• C) private borrowing, government budget deficits, and lending to the rest of the world.
• D) private saving and borrowing from the rest of the world only.

---

Definitions:

Promissory Note

A financial instrument involving a written promise by one party to pay another a definite sum of money either on demand or at a specified future date.

Simple Interest

Interest calculated only on the original principal, not on the accumulated interest from previous periods.

Maturity Value

The amount payable to an investor at the end of a debt instrument's life, including both the principal and the interest.

Promissory Note

A financial document in which one party promises in writing to pay a determinate sum of money to another, either at a fixed or determinable future time or on demand.