Last year a country had exports of $100 billion,imports of $70 billion,and purchased $60 billion worth of foreign assets.What was the value of domestic assets purchased by foreigners?
A)$70 billion
B)$40 billion
C)$30 billion
D)$10 billion

Question

Quizplus · Accepted Answer

The country had a trade surplus of $30 billion ($100 billion exports - $70 billion imports), meaning it had more money coming in than going out. It used $60 billion of that surplus to buy foreign assets, which means it had $30 billion left over to buy domestic assets. Therefore, the value of domestic assets purchased by foreigners is equal to the trade surplus, which is $30 billion.

Last Year a Country Had Exports of $100 Billion,imports of $70