Which of the Following Statements Is True About the Role

question 240

Multiple Choice

Which of the following statements is true about the role of gifts given to U.S. citizens from foreign residents?

• A) Gifts are not included in the balance of payments because of the nature of the gift.
• B) Gifts are only included in the balance of payments if the gift is given to a government official.
• C) Gifts are included in the balance of payments.
• D) Gifts given to U.S. citizens are not included in the balance of payments but gifts given to foreigners are included.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or another security, as stated by the issuer.

Interest Expense

The cost incurred by an entity for borrowed funds, represented as interest payments on debt.

Premium on Bonds

The amount by which the selling or market price of a bond exceeds its face value or par value.

Face Value

The nominal value printed on a financial instrument like a bond or stock certificate, representing its value at issuance.