A country's external wealth is equal to:
A) its exports minus imports.
B) its overall debt.
C) its foreign assets minus its foreign liabilities.
D) the amount foreigners have invested in the United States.

Question

Quizplus · Accepted Answer

External wealth refers to a country's net foreign assets, which is the difference between its foreign assets and foreign liabilities. This includes a country's holdings of foreign currency, investments in foreign companies, and ownership of foreign property. It is a measure of a country's ability to generate income from its overseas holdings, and can contribute to its overall economic strength. Options A, B, and D are not accurate measures of a country's external wealth.

A Country's External Wealth Is Equal To