a-us-citizen-buys-a-50000-bond-from-a-uk-company-how-does-this-transaction-affec

Question

A US citizen buys a $50,000 bond from a UK company. How does this transaction affect US net foreign investment?

Accepted Answer

Net foreign investment increases by $50,000.

Answer

Net foreign investment decreases by $50,000.

Answer

Net foreign investment is unrelated to bond purchases.

Answer

Net foreign investment remains unchanged.

A US citizen buys a \$50,000 bond from a UK company. How does this transaction affect US net foreign investment?