If Net Exports Are Positive, Then

question 339

Multiple Choice

If net exports are positive, then

• A)net capital outflow is positive, so foreign assets bought by Americans are greater than American assets bought by foreigners.
• B)net capital outflow is positive, so American assets bought by foreigners are greater than foreign assets bought by Americans.
• C)net capital outflow is negative, so foreign assets bought by Americans are greater than American assets bought by foreigners.
• D)net capital outflow is negative, so American assets bought by foreigners are greater than foreign assets bought by Americans.

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Definitions:

Straight Bond Value

The value of a bond that does not have any embedded options such as convertibility or callability, calculated based on its coupon payments and maturity value.

Conversion Price

The predetermined price at which convertible security, such as a convertible bond or preferred stock, can be converted into a specified amount of common stock.

Coupon

The annual interest rate paid on a bond, expressed as a percentage of the face value.

Convertible Bond

A category of bond which allows conversion into a specific quantity of the issuer's equity at designated times throughout its lifespan, often at the choice of the person holding the bond.