Capital Account Transactions Occur

question 236

Multiple Choice

Capital account transactions occur

• A)when an U.S. company purchases goods from a foreign company.
• B)because of cross-border flows of financial assets.
• C)when you move money from one U.S. bank to another U.S. bank.
• D)when an U.S. citizen purchases stock in an U.S. corporation.

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Definitions:

Index Funds

Mutual funds or ETFs designed to track the components of a market index, offering broad market exposure and low operating expenses.

Expected Monetary Value

A statistical concept that calculates the average outcome of a future event that may or may not happen, taking into account all possible scenarios and their probabilities.

Average Payoff

The expected outcome or return of an investment or decision averaged over all possible scenarios.

Expected Value

The predicted value of a variable, calculated as the weighted average of all possible values this variable can take; each value is weighted by its probability of occurrence.