In 2009,the Gap Between Foreign Assets in the United States

question 131

Multiple Choice

In 2009,the gap between foreign assets in the United States and U.S.assets abroad was

• A)$3 trillion.
• B)$2.5 trillion.
• C)$4 trillion.
• D)$6.5 trillion.

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Definitions:

Opportunity Costs

The potential benefits missed out on when choosing one alternative over another.

IRR

The Internal Rate of Return is a financial metric used to estimate the profitability of potential investments, calculated as the rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

NPV

Net Present Value; a financial metric used to evaluate the profitability of an investment, calculated by subtracting the initial investment from the present value of cash inflows.

AAR

Average Annual Return; calculating the mean annual return of an investment over a specified time period.