External wealth can increase by all of the following, EXCEPT:
A) rises in the value of international assets (capital gains).
B) decreases in the value of liabilities to international entities.
C) borrowing from international entities.
D) lending to international entities.

Question

Quizplus · Accepted Answer

External wealth increases when the value of a country's international assets rises or when its liabilities decrease. Borrowing from international entities increases a country's liabilities, thus reducing its external wealth, unlike capital gains, decreases in liabilities, or lending, which all increase external wealth.

External Wealth Can Increase by All of the Following, EXCEPT