The Current Account of the U

question 112

Multiple Choice

The current account of the U.S.balance-of-payments does not include

• A) investment income.
• B) merchandise exports and imports.
• C) the sale of securities to foreigners.
• D) unilateral transfers.

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Definitions:

Investors' Money

Funds provided by investors to be used in business activities with the expectation of future returns.

Financial Statements

Reports created from accounting records that summarize a firm’s performance in money terms.

Cost of Capital

Refers to the opportunity cost of making a specific investment, representing the rate of return that could have been earned by putting the same money into a different investment with equal risk.

Short-Term Debt

Obligations or loans that are due to be paid back within a short period, typically one year or less.