Asked by Vhukhudo Mukhudwane on May 19, 2024

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Which statement is false?

A) Foreigners have reinvested most of the dollars they have earned trading with us in U.S.government and corporate securities,real estate,and direct investment in plant and equipment.
B) Until the early 1980s Americans were investing much more in foreign countries than foreigners were in the United States.
C) Our capital and current accounts add up to zero.
D) None of these statements is false.

Capital Accounts

Part of a nation's balance of payments that records all transactions involving the purchase and sale of assets.

Current Accounts

A component of a country’s balance of payments that includes the balance of trade, net primary income, and net earnings on foreign investments.

  • Articulate the parts and importance of the balance of payments including its accounts.
  • Analyze how overseas investments influence the interest rates and property ownership in the United States.
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JS
Jasmine SantanaMay 21, 2024
Final Answer :
D
Explanation :
All the statements provided are true. Statement A accurately describes the investment behavior of foreigners with their earnings from trade with the U.S. Statement B correctly notes the shift in investment patterns that occurred in the early 1980s, where prior to this, Americans invested more abroad than foreigners did in the U.S. Statement C is a fundamental principle of balance of payments accounting, where the capital account and current account transactions should theoretically balance out to zero. Therefore, none of the statements is false.