Use the Following to Answer Questions: Table: Balance of Payments

question 116

Multiple Choice

Use the following to answer questions: Table: Balance of Payments Accounts $$\begin{array} { l c } \hline \text { ITEM } & \text { DOLLAR VALUE } \\\hline \text { Exports } & \$ 300 \mathrm {~m} \\\text { Imports } & \$ 620 \mathrm {~m} \\\text { Net income on capital held abroad } & \$ 35 \mathrm {~m} \\\text { Foreign aid received } & \$ 100 \mathrm {~m} \\\text { Foreign direct investment } & \$ 120 \mathrm {~m} \\\text { Portfolio investment } & \$ 50 \mathrm {~m} \\\text { Other investment } & \$ 50 \mathrm {~m} \\\hline\end{array}$$
-(Table: Balance of Payment Accounts) According to the data in this table, which of the following statements is TRUE for this country?

• A) This country has a balance of trade surplus of $620 million.
• B) This country has a balance of trade deficit of $320 million.
• C) This country has a current account deficit of $320 million.
• D) This country has a current account surplus of $185 million.

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Definitions:

Par Common Stock

The face value of common stock as stated in the corporate charter, which is the minimum amount at which shares can initially be sold.

Par Preferred Stock

A type of preferred stock that is issued at its nominal or face value, and typically has a fixed dividend rate.

Debit to Cash

An accounting entry that increases the cash balance in a company's books.

Paid-In Capital

The total amount of money investors have contributed to a company in exchange for equity.