A Negative Balance in the Capital Account Means the Economy

question 78

Multiple Choice

A negative balance in the capital account means the economy is

• A) running a capital account surplus
• B) borrowing from the rest of the world
• C) lending to the rest of the world
• D) importing more than it is exporting

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Definitions:

Reorder Point

The inventory level at which a new order should be placed to replenish stock before it depletes to a critical level.

Fixed-Period Model

An inventory control model where orders are placed at fixed intervals, such as weekly or monthly, regardless of inventory level.

Safety Stock

A quantity of stock kept on hand to protect against unexpected increases in demand or delays in supply delivery.

Production Order Quantity Model

An economic order quantity technique applied to production orders.