A Creditor Nation Means a Nation

question 79

Multiple Choice

A creditor nation means a nation

• A) whose exports exceed its imports.
• B) whose current account is larger than its capital account.
• C) whose current lending to the rest of the world exceeds its borrowing from the rest of the world.
• D) who through its history has invested more in the rest of the world than other countries have invested in it.

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Definitions:

Initial Investment

The amount of money spent to start a project, purchase assets, or acquire a business.

Net Cash Inflow

The amount of cash that a company generates from its operational, investment, and financing activities, after accounting for cash outflows.

Payback Period

The time required for an investment to generate cash flows sufficient to recoup the initial investment cost.

Rate of Return

A measure of the profit or loss on an investment over a specific period, expressed as a percentage of the investment's initial cost.