When a USInvestor Buys a Bond Issued in a Foreign Country

question 5

Multiple Choice

When a U.S.investor buys a bond issued in a foreign country

• A)the balance on the capital account decreases.
• B)the balance on the current account decreases.
• C)the balance on the financial account decreases.
• D)the balance of trade decreases.

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Definitions:

Strategic Decisions

High-level choices made by an organization's leadership that can significantly impact its overall direction and success, typically involving long-term planning and resource allocation.

Long-Term Plans

Strategy and objectives set for achieving goals over an extended period, often spanning years.

Useful Information

Data that is accurate, relevant, and timely, providing significant value to the decision-making process by enhancing understanding or reducing uncertainty.

Completeness

The state or condition of having all necessary parts, information, or elements present and accounted for.