When a U.S. resident increases her holdings of a foreign financial asset, this item is recorded as a

A. debit entry in the U.S. current account.
B. credit entry in the U.S. current account.
C. credit entry in the U.S. financial account.
D. debit entry in the U.S. financial account.

Answer: D

Economics

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Economics

An equal increase in all bond interest rates

A) increases the return to all bond maturities by an equal amount. B) decreases the return to all bond maturities by an equal amount. C) has no effect on the returns to bonds. D) decreases long-term bond returns more than short-term bond returns.

Economics