Which of the Following Is Not One of the Ways

question 21

Multiple Choice

Which of the following is not one of the ways in which the United States finances a trade deficit?

• A)Selling U.S. assets to foreigners
• B)Selling U.S. products to foreigners
• C)Selling U.S. land and factories to foreigners
• D)Selling U.S. stocks and bonds to foreigners

---

Definitions:

Fixed Cost

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.

Debt-to-Total-Assets Ratios

A measure that indicates what proportion of a company's assets is financed through debt.

Equity Ratios

Equity ratios measure a company's financial leverage and are calculated by dividing total equity by total assets.

Debt-to-Equity Ratios

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.