Which of the Following Is NOT a Deficit Item on a Country's

question 168

Multiple Choice

Which of the following is NOT a deficit item on a country's balance of payments?

• A) gold sales to foreigners
• B) imports
• C) a personal gift to a foreign individual
• D) none of the above

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, set by the issuing company at the time of issue.

Coupon Bond

A debt security issued by corporations or governments that pays periodic interest payments based on a fixed interest rate until the bond reaches its maturity date, at which point the principal is repaid.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match the market value.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, accounting for its current market price, face value, interest rate, and time to maturity.