If Purchases of Foreign Assets by U

question 69

True/False

If purchases of foreign assets by U.S. residents exceed purchases of U.S. assets by foreign residents, then U.S. net capital outflow is positive.

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Definitions:

Fair Value

The proceeds from divesting an asset or the expense for reallocating a liability in a conventional transaction between market stakeholders at the calculation date.

Investment Account

An account held at a financial institution that is used to buy and hold various investment securities, such as stocks and bonds.

Corporate Existence

The state of being recognized as a separate entity with legal rights and obligations, typically achieved through incorporation.

Fair Value

The financial gain from trading away an asset or the investment needed to dissolve a liability in a negotiated agreement amongst market stakeholders at the time of valuation.