When Net Capital Outflow Is Negative, It Means That on Net

question 2

True/False

When net capital outflow is negative, it means that on net the value of domestic assets purchased by foreigners exceeds the value of foreign assets purchased by domestic residents.

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Definitions:

Boeing

An American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunication equipment, and missiles worldwide.

Institutional Investor

An organization, such as a bank, pension fund, mutual fund, or insurance company, that invests large sums of money into the financial markets.

Zero-Coupon Bonds

Bonds issued at a discount to their face value, paying no periodic interest but redeemed at par value at maturity.

Par Value

The face value of a bond or stock, as stated by the issuing company.