When a UScompany Buys Shares of Stock in a French Company on Company

question 23

Multiple Choice

When a U.S.company buys shares of stock in a French company on France's stock market,the U.S.balance of payments records the transaction as an ________.

• A)outflow of capital with a plus sign
• B)outflow of capital with a minus sign
• C)inflow of capital with a plus sign
• D)inflow of capital with a minus sign

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Definitions:

Used Goods

Items that have been owned and used by someone else before being sold or passed on to another person.

GDP

Gross Domestic Product is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of all goods and services produced within a country's borders in a given period of time in real terms.

Define GDP

Gross Domestic Product (GDP) represents the overall market or monetary value of all finished goods and services produced inside a nation's boundaries over a certain period.