When a Foreigner Buys Shares in a U

question 101

Multiple Choice

When a foreigner buys shares in a U.S. company, the transaction

• A) is registered as a credit in the capital account, and it decreases foreign private assets in the United States.
• B) is registered as a debit in the current account, and it decreases private U.S. assets abroad.
• C) is registered as a credit in the capital account, and it increases foreign private assets in the United States.
• D) is registered as a debit in the capital account, and it increases private U.S. assets abroad.

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Definitions:

Acronym

A word formed from the initial letters or groups of letters of words in a phrase or series of words, used as an abbreviation (e.g., NASA, scuba).

Hum

A low, steady, continuous sound often produced by machinery, electronic devices, or by a group of similar sounds blending together.

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A phenomenon in which a person's recall of an event becomes less accurate due to the introduction of misleading information.

Deese-Roediger-McDermott

A phenomenon in cognitive psychology where people falsely remember words related to those they have actually heard.