In the balance of payments accounts, a net importer of capital is a nation that
a. sells more goods in foreign countries than it imports
b. buys more goods from foreign countries than it exports
c. sells more assets to individuals in other countries than the assets it buys from them
d. buys more assets from individuals in other countries than the assets it sells to them
e. imports less machinery than it exports
QUESTION 2Generally, the longer the maturity on a bond, the lower the interest rate.
a. True
b. False
QUESTION 3A net importer of assets must have a
a. current account deficit
b. capital account deficit
c. current account surplus
d. capital account surplus
e. balance of deficit trade
QUESTION 4Administrative costs make small loans less profitable than large ones, other things equal.
a. True
b. False
QUESTION 5Which of the following is true of the United States?
a. It has been and continues to be a net capital exporter.
b. It is today the world's largest debtor nation.
c. It was, until the last decade, a net capital importer.
d. It has historically been a debtor nation.
e. It is the world's largest creditor nation.
QUESTION 6The interest rate charged on a risk-free loan exceeds the rate on a risky loan.
a. True
b. False
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