The Balance of Payments Account Which Records Foreign Investment in Australia

question 2

Multiple Choice

The balance of payments account which records foreign investment in Australia and Australian investments abroad is the

• A)official settlements account.
• B)current account.
• C)capital and financial account.
• D)None of the above because foreign investment in Australia is included in one account and Australian investment abroad is included in another account.

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Definitions:

Current Payables

Short-term obligations or debts a company owes to its creditors that are due within one year.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Payroll

The total amount of wages and salaries paid by a company to its employees.

Fundamental Analysis

Assessment of firm value that focuses on earnings and dividends prospects, expectations for future interest rates, and risk evaluation.