In the U.S. balance of payments, foreign purchases of assets in the United States are a

A) money outflow.
B) money inflow.
C) current account item.
D) debit, or outpayment.

Question

In the U.S. balance of payments, foreign purchases of assets in the United States are aA) money outflow.B) money inflow.C) current account item.D) debit, or outpayment.

Sarah Carroll · Accepted Answer

Final Answer : B, Explanation :  Foreign purchases of assets in the United States represent a money inflow because it means foreign investors are investing their money into the U.S. economy, which increases the supply of foreign currency in exchange for U.S. assets.

In the U.S. balance of payments, foreign purchases of assets in the United States are a

A) money outflow.
B) money inflow.
C) current account item.
D) debit, or outpayment.

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Learning Objectives

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