Question

A U.S. company uses U.K. pounds it already owned to purchase bonds issued by a company in the U.K. Which of these countries has an increase in net capital outflow?

Answer 1

d. Neither the U.S. nor the U.K.

Step-by-step explanation:

Net capital outflow is the net flow of funds i.e. invested in abroad by a nation during a specified period of time generally a year. It could come in positive when the nation invest more amount as compared with the invested amount in the world

Since in the question it is mentioned that U.S company that used U.K pounds that are already owned to buy bond issued by a U.K company

So here no one has an increase in net capital outflow

hence, the correct option is d.