A Negative Balance in the Capital and Financial Account Means

question 78

Multiple Choice

A negative balance in the capital and financial account means the economy is

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

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Definitions:

Make-Or-Buy Decision

A strategic decision-making process used by companies to determine whether it is more cost-effective to produce goods internally or buy them from an external supplier.

Cost Savings

Reductions in expenses achieved through efficiency improvements, budget adjustments, or other financial strategies.

Production Opportunities

Situations or contexts in which a company has the potential to increase its output, efficiency, or product offerings.