Which of the Following Is TRUE About Current Cost Method

question 8

Multiple Choice

Which of the following is TRUE about current cost method and market value method?

• A) They are used by the BEA to place current values on foreign indirect investments.
• B) These methods lead to the same valuations.
• C) Based on the current cost method, the BEA's 2009 estimate of U.S. net foreign wealth was $2,737.86 billion.
• D) The current cost method is preferred by the BEA.
• E) Foreign direct investments of the U.S. are valued at their original purchase price.

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