A Foreign Bank Receives a Deposit of $10,000 from a U.S.citizen.As

question 44

Multiple Choice

A foreign bank receives a deposit of $10,000 from a U.S.citizen.As a result,there is a net capital outflow from the U.S. ,if ________.

• A)the bank buys a U.S.-made computer
• B)the bank buys a bond issued by a U.S.company
• C)the bank keeps the $10,000 in a vault
• D)all of the above
• E)none of the above

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Definitions:

World Price

The price of a commodity that is determined by the global market, reflecting its supply and demand worldwide.

Net Loss

A financial situation where total expenses exceed total revenues over a specific period, reflecting a negative profit.

World Trade Organization

An international organization established to supervise and liberalize world trade.

Trade Agreements

Formal accords between countries to regulate tariffs, access, and standards in international trade.