How international trade in assets can make both countries better off?
What will be an ideal response?
By allowing them to reduce the riskiness of the return on their wealth and by allowing the two parties to diversify their portfolios, i.e., to divide their wealth among a wider spectrum of assets, and thus reduce the amount of money placed on one specific asset.
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In a year, if foreigners invest ________ in the United States than the United States invests abroad, the capital and financial account balance is ________
A) less; positive B) more; zero C) less; zero D) more; positive E) more than; negative
Only about a quarter of the population eligible for housing subsidies actually receives them.
A. True B. False C. Uncertain
The market supply curve for any product:
a. always depends on the market demand for that product. b. depends on the general income level of the consumers in the market. c. is a summation of individual firms' supply curves. d. equals the total revenue generated through sale of the commodity. e. is affected by the prices of related products.
Bond markets allow firms to pursue
a. equity financing. b. debt financing. c. limited growth policies. d. government loans and subsidy programmes