If Foreign Holdings of U

question 66

Multiple Choice

If foreign holdings of U.S.dollars increase,holding all else constant

• A)the balance on the U.S.financial account will increase.
• B)the balance on the U.S.current account will increase.
• C)the balance on the U.S.capital account will increase.
• D)the U.S.balance of trade will increase.

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Definitions:

Carrying Amount

Carrying amount, also known as book value, is the value recorded on the balance sheet for a particular asset, reflecting its original cost minus any depreciation, amortization, or impairment costs.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset over its useful life.

Impairment Loss

An impairment loss occurs when the carrying amount of an asset exceeds its recoverable amount, indicating the asset is not expected to generate future benefits worth its recorded value.

Accumulated Depreciation

The total amount of depreciation expense allocated to an asset since it was put into use.