Which One of the Following, Other Things Equal, Will Directly

question 100

Multiple Choice

Which one of the following, other things equal, will directly alter Canada's balance of trade?

• A)an increase in official international reserves
• B)a decrease in merchandise exports
• C)an increase in net transfers
• D)a decrease in capital outflows

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Initial Cost

The upfront expenditure involved in the purchase of an asset or the start of a project.

Capital Budgeting

The process by which a business evaluates and plans for significant investments in projects or assets.

Useful Life

The estimated duration of time over which an asset is expected to be usable by its owner for its intended purpose.