Which of the Following Best Describes the Cross-Border Net Flow

question 132

Multiple Choice

Which of the following best describes the cross-border net flow of dividends and interest payments?

• A) part of the current account balance
• B) part of net capital outflow
• C) part of net exports
• D) part of foreign direct investment

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Definitions:

ARM

Adjustable Rate Mortgage; a type of mortgage loan where the interest rate varies throughout the loan period based on an index.

Equity

The amount of a home that an owner actually owns.

Loan Balance

The amount of money that remains to be paid on a loan, excluding interest or fees that may accumulate.

Sales Tax

A percentage paid to the government of sales on products or services.