If the US Current Account Balance Is -$500 Billion and the Capital

question 64

Multiple Choice

If the U.S. current account balance is -$500 billion and the capital and financial account balance is +$510 billion

• A) the U.S. official settlements account balance is $10 billion.
• B) the U.S. government's holdings of foreign currency increases by $10 billion.
• C) foreign investment in the United States is smaller than the U.S. investment abroad.
• D) U.S. exports are greater than U.S. imports.

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Definitions:

Par

The face value of a bond or other financial instrument, which is the amount to be paid to the holder at maturity.

HPR

Holding Period Return, a measure of the total return received from holding an asset or portfolio of assets over a specified period of time.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash payments or additional shares.

Dollar-Weighted Return

A method of calculating an investment's return that considers the timing and amount of each investment or withdrawal made.