Countries with Large Current Account Surpluses Might Be Viewed by the Market

question 93

Multiple Choice

Countries with large current account surpluses might be viewed by the market as candidates for

• A) devaluation.
• B) revaluation.
• C) bankruptcy.
• D) depreciation.
• E) investment.

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Definitions:

Fixed Costs

Outlays for rent, salaries, and insurance that are unaffected by variations in the volume of production or sales.

Sales Dollars

A term referring to the total revenue generated from the sale of goods or services, expressed in monetary value.

High-Low Method

A method employed in cost accounting that calculates estimated variable and fixed costs using the highest and lowest activity levels.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold by a business.