Which of the Following Generates a Supply of U

question 9

Multiple Choice

Which of the following generates a supply of U.S.dollars?

• A)The demand for U.S.exports to foreign countries.
• B)Foreign tourists visiting the United States.
• C)The construction of a plant abroad by a U.S.corporation.

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Definitions:

Transaction Motive

The need to hold cash for the purpose of conducting day-to-day business transactions.

Disbursement Activities

The process involving the payment of money from a fund or account, typically referring to the cash flow outgoing from a business or individual for expenses, investments, or other financial purposes.

Collection Activities

Actions taken by businesses or agencies to collect debts owed by customers or clients.

Total Collection Time

The total amount of time taken to collect payments from customers from the point of sale to the actual receipt of funds.