Asked by James Stupin on Jul 30, 2024
Verified
In the U.S. balance of payments, U.S. purchases of assets abroad are a(n)
A) money outflow.
B) money inflow.
C) current account item.
D) inpayment.
Assets Abroad
Financial holdings or investments located outside one's home country, which can include bank accounts, real estate, stocks, and bonds.
Money Outflow
The movement of money out of a particular country, market, or economic sector, often to foreign countries or investments.
- Distinguish the jobs of various accounts within a nation's balance of payments, namely the current account, capital account, and financial account.
- Illuminate the factors prompting changes in a country's balance of payments and the consequence of these changes.
Verified Answer
ZK
Zybrea KnightAug 06, 2024
Final Answer :
A
Explanation :
U.S. purchases of assets abroad represent a money outflow because it involves the U.S. spending money to acquire assets in other countries, leading to a flow of funds out of the U.S. economy.
Learning Objectives
- Distinguish the jobs of various accounts within a nation's balance of payments, namely the current account, capital account, and financial account.
- Illuminate the factors prompting changes in a country's balance of payments and the consequence of these changes.