Mexico Suffered from Capital Flight in 1994

question 138

Multiple Choice

Mexico suffered from capital flight in 1994. What happened to Mexico's net exports?

• A) They decreased.
• B) They did not change.
• C) They increased.
• D) They decreased until the peso appreciated; then they increased.

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Definitions:

Direct Method

A method of reporting cash flows from operating activities by showing major classes of gross cash receipts and payments.

Accounts Receivable

Receivables from customers to a business for goods or services that have been supplied but payment has not been made.

Sales Revenue

The total amount of money generated from the sale of goods or services by a company before any costs or expenses are deducted.

Direct Method

A way of allocating service department costs directly to the producing departments without considering services rendered between service departments.