The Greater the Demand for U.S. Exports, the

question 61

Multiple Choice

The greater the demand for U.S. exports, the

• A) larger is the demand for non- U.S. currencies.
• B) larger is the demand for U.S. dollars.
• C) larger is the current account deficit.
• D) smaller is the demand for U.S. dollars.

---

Definitions:

Cash Cycle

The period between the outlay of cash for the purchase of raw materials and the collection of cash from the sale of products, measuring how efficiently a company manages its working capital.

Inventory Period

The average time it takes for a company to turn its inventory into sales.

Accounts Receivable Period

Also known as days sales outstanding (DSO), it measures the average number of days it takes for a company to collect payment after a sale has been made.

Operating Cycle

The period of time it takes for a business to purchase inventory, sell products or services, and collect cash from these sales.