Net Capital Outflow Measures the Imbalance Between the Amount of

question 173

Multiple Choice

Net capital outflow measures the imbalance between the amount of

• A)foreign assets held by domestic residents and domestic assets held by foreign residents.
• B)foreign assets bought by domestic residents and the amount of domestic assets bought by foreigners.
• C)foreign assets bought by domestic residents and the amount of domestic goods and services sold to foreigners.
• D)None of the above is correct.

---

Definitions:

Bond Premium

The amount by which the market price of a bond exceeds its principal amount or face value.

Amortization Methods

Techniques used to gradually write off the initial cost of an intangible asset over its useful life.

Amortization

The gradual reduction of a debt over a specified period of time through regular payments of principal and interest.

Retire Bonds

The process of paying off bond indebtedness before the maturity date, thereby removing the bonds from circulation.