Asked by

Shifa alameri
on Nov 12, 2024

verifed

Verified

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.
verifed

Verified Answer

MC
Merrick CabezasNov 15, 2024
Final Answer:
Get Full Answer