The Current Account Is the Sum Of

question 46

Multiple Choice

The current account is the sum of:

• A) net income from abroad + net transfer payments from abroad.
• B) exports + imports.
• C) net exports + net transfer payments from abroad.
• D) net exports + net income from abroad + net transfer payments from abroad.

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Definitions:

Total Revenue Line

A financial metric representing the total amount of money generated from sales before any expenses are subtracted.

Sales Mix

The proportion of different products or services that a company sells, representing the combination of sales that impacts overall profitability.

Total Profits

The sum of net income or net earnings of a company after all expenses, including taxes and costs, have been deducted from total revenue.

Contribution Margin Ratio

A financial metric that calculates the proportion of revenue that exceeds total variable costs, thus indicating how much revenue contributes to fixed costs and profits.