The Term Net Unilateral Transfers Refers To

question 97

Multiple Choice

The term net unilateral transfers refers to:

• A) income earned abroad by a nation's own workers minus income paid to foreign non-resident workers.
• B) gifts, charitable contributions, and foreign aid.
• C) gifts, charitable contributions, and aid to foreign residents minus the same types of transfers to residents of the home nation.
• D) government subsidies to home corporations minus the same government subsidies to international corporations.

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Definitions:

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is used in finance to gauge the amount of historical volatility of an investment.

Risk-Free Asset

An investment that is expected to return its principal and interest with near certainty, such as government bonds from stable countries.

Risky Asset

An investment that has a significant degree of uncertainty in its returns.

Asset Allocation

The process of spreading investments among various categories of assets (e.g., stocks, bonds, real estate) to optimize risk and return.