When the U

question 230

Multiple Choice

When the U.S. real interest rate falls, owning U.S. assets becomes

• A)less attractive and so U.S. net capital outflow rises.
• B)less attractive and so U.S. net capital outflow falls.
• C)more attractive and so U.S. net capital outflow rises.
• D)more attractive and so U.S. net capital outflow falls.

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Definitions:

Premium Rate

The rate charged for an insurance policy, typically a periodic payment based on the level of coverage and risk factors.

Coinsurance Clause

A provision in an insurance policy that requires the insured to bear a portion of the costs of a claim, typically after the deductible has been met.

Premiums

Payments made regularly to an insurance company for coverage, often monthly or yearly.

Coinsurance Clause

A provision in an insurance policy that determines the percentage of the cost a policyholder is responsible for after the deductible is met.