Which of the Following Is an Example of a Capital

question 46

Multiple Choice

Which of the following is an example of a capital outflow for the US?

• A)A domestic increase of assets held by foreign investors
• B)A reduction in US foreign asset holdings
• C)An increase in US foreign asset holdings
• D)Unilateral transfers from foreigners

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Definitions:

Net Exports

The value of a country's total exports minus its total imports, representing the balance of trade.

Trade Surplus

A situation where a country's exports exceed its imports, indicating that it is selling more goods and services to other countries than it is buying.

U.S. Exports

Goods, services, and capital sent from the United States to other countries, contributing to the country's economy.

Net Capital Outflow

The difference between a country's savings and its domestic investments, representing the amount of money that flows out of the country to invest abroad minus the amount of money that flows into the country from foreign investors.