If a Country Had a Trade Surplus of $100 Billion

question 91

Multiple Choice

If a country had a trade surplus of $100 billion and then its exports rose by $40 billion and its imports rose by $30 billion,its net exports would now be

• A)$110 billion
• B)$90 billion.
• C)$70 billion.
• D)$60 billion.

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Definitions:

Cash Dividend Payment

A distribution of a company's earnings declared by the board of directors to its shareholders in the form of cash.

Financing Activities

Financing activities are transactions between a company and its creditors or investors, including issuing equity, paying dividends, and obtaining or repaying loans, which are used to fund the company's operations or expansions.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Cash Flow Ratio

A liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash flows from operations.