The Normal View of 'Long Terms' Now Implies

question 20

Multiple Choice

The normal view of 'long terms' now implies:

• A) three to five years
• B) five to ten years
• C) three years
• D)more than ten years

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Definitions:

Domestic Assets

Domestic assets are financial assets located within a country's borders and denominated in the country's domestic currency.

Foreign Assets

Financial assets held in a country other than the investor's home country, including stocks, bonds, real estate, or currencies.

U.S. Net Exports

The value of goods and services exported by the United States minus the value of goods and services it imports, reflecting the country's trade balance.

U.S. Net Capital Outflow

The difference between the amount of U.S. assets bought by foreigners and the amount of foreign assets bought by Americans within a specific time period.