If Foreigners Increase Their Ownership of U

question 97

Multiple Choice

If foreigners increase their ownership of U.S.assets, this would help to offset

• A)a deficit in the U.S.current account
• B)a deficit in the U.S.capital account
• C)a surplus in the U.S.current account
• D)a surplus in the U.S.capital account
• E)a surplus in the total balance of payments

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Definitions:

Stock Option Plan

A scheme offered by a company to its employees, allowing them to purchase company shares at a predetermined price after a set period.

Paid-In Capital

The amount of money that a company has received from shareholders in exchange for shares of stock.

Fair Value

An estimate of the market value of an asset or liability based on current market prices or valuations.

Common Stock

A type of equity security that represents ownership in a corporation, usually with voting rights and potential for dividends.