When All of the Debit or Credit Items in the Balance-Of-Payments

question 141

Multiple Choice

When all of the debit or credit items in the balance-of-payments are combined

• A) merchandise imports equal merchandise exports.
• B) capital imports equal capital exports.
• C) services exports equal services imports.
• D) the total surplus or deficit equals zero.

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Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.

New Bonds

Securities that have been recently issued, representing loans from investors to issuers such as corporations or governments with a commitment to pay interest and return principal at specified dates.

Cash Ratio

A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its cash and cash equivalents.