​Which of the Following Is a Key Component That Determines

question 49

Multiple Choice

​Which of the following is a key component that determines a country's primary income (within the country's current account) ?

• A) ​direct foreign investment
• B) ​international trade
• C) ​tax rates
• D) ​gifts

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Definitions:

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, which includes the balance sheet, income statement, and statement of cash flows.

Base Amount

The initial value or standard measure that is used as a reference point for calculations, comparisons, or adjustments.

Acid-test Ratio

The acid-test ratio is a financial metric used to assess a company's ability to pay off its short-term liabilities with its most liquid assets, excluding inventory.

Short-term Investments

Financial assets that are expected to be converted into cash or sold within a year or the operating cycle, whichever is longer.