Which of the following transactions leads to an inflow of funds on the U.S. financial account?
A) A U.S. resident purchases a share of stock on the Hong Kong exchange.
B) A U.S. resident sells wheat to an African nation.
C) A resident of China purchases U.S. government bonds.
D) A resident of Mexico visits the United States.
Answer: C
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Which of the following statements about international trade is true?
A) Potentially, a country can have absolute advantage in all goods. B) Potentially, a country can have relative advantage in all goods. C) After trade, countries tend to specialize in the production of those goods in which they enjoy absolute advantage. D) None of the above is true.
Before the South Korean financial crisis, sales by the top five chaebols (family-owned conglomerates) were
A) nearly 50% of GDP. B) about 10% of GDP. C) almost 90% of GDP. D) nearly 25% of GDP.
Municipal bonds pay a relatively
a. low rate of interest because of their high default risk and because the interest they pay is subject to federal income tax. b. low rate of interest because of their low default risk and because the interest they pay is not subject to federal income tax. c. high rate of interest because of their high default risk and because federal taxes must be paid on the interest they pay. d. high rate of interest because of their low default risk and because the interest they pay is not subject to federal income tax.
The most likely source of investment funds for a proprietorship is
A. sales of bonds. B. sales of stocks. C. the personal funds of the owner. D. loans from banks.