The Formula for Calculating the Net Increase in Foreign-Owned Holdings

question 138

Multiple Choice

The formula for calculating the net increase in foreign-owned holdings is

• A) change in foreign-owned assets in the United States minus change in U.S.-owned assets abroad.
• B) change in U.S.-owned assets abroad minus change in foreign-owned assets in the United States.
• C) change in foreign-owned assets in the United States minus change in U.S.-owned assets abroad plus statistical discrepancy.
• D) change in U.S.-owned assets abroad minus change in foreign-owned assets in the United States plus statistical discrepancy.

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Definitions:

Growth Fund

A type of mutual fund or investment fund that focuses on investing in growth stocks or companies expected to grow at an above-average rate compared to their industry or the market.

Net Asset Value

The total value of a fund's assets minus its liabilities, often used in the context of mutual funds to describe the per share/unit value of the fund.

Year-End Assets

The total value of all assets held by an individual or entity at the end of a fiscal year.

Bonds

Debt securities issued by entities (such as governments or corporations) to raise capital, with a promise to pay back the principal amount along with interest on specified dates.