When Net Capital Flows Are Negative

question 125

Multiple Choice

When net capital flows are negative,

• A)capital inflows are less than capital outflows.
• B)net foreign investment is negative.
• C)the current capital account balance is negative.
• D)capital outflows are less than capital inflows.
• E)A and B are both correct.

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Definitions:

Founders' Ownership

The proportion of a company's equity that is owned by its original creators or founders.

Dilution

A reduction in the ownership percentage of a share of stock caused by the issuance of new shares.

Share Price

The market price of a single share of a company's stock, reflecting the value investors place on the company.

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis.