Asked by
Shifa alameri
on Nov 12, 2024Verified
If foreigners increase their ownership of U.S.assets,this would help to offset:
A) a deficit in the U.S.current account.
B) a deficit in the U.S.capital account.
C) a surplus in the U.S.current account.
D) a surplus in the U.S.capital account.
E) a surplus in the overall balance of payments.
U.S. Current Account
The sum of the balance of trade (goods and services exports less imports), net income from abroad, and net current transfers for the United States, providing a measure of the country's international economic position.
U.S. Capital Account
Involves transactions that do not affect a country’s income, savings, or investments but consist mainly of international transfers of financial assets, such as loans and investments.
Ownership
The state or fact of having legal possession and control over property, whether it is tangible or intangible.
- Differentiate the current and capital accounts in the context of balance of payments analysis.
Verified Answer
MC
Learning Objectives
- Differentiate the current and capital accounts in the context of balance of payments analysis.