A Reserve Assets Account Balance of - $5,000 Means

question 130

Multiple Choice

A reserve assets account balance of - $5,000 means

• A)the country is exporting more than it is importing.
• B)official reserves of foreign currency increased by $5,000.
• C)the country is importing more than it is exporting.
• D)official reserves of foreign currency decreased by $5,000.

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Definitions:

Cash Payback Period

The length of time it takes for an investment to generate enough cash flow to recover the initial investment cost.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specified period, representing the overall change in its cash position.

Average Rate of Return

A financial ratio that compares the average annual profit of an investment to its initial cost, often used to assess the profitability of an investment over time.

Present Value Factors

Multipliers used to calculate the present value of a future amount of money or stream of cash flows given a specific discount rate.