When the Inflow of Foreign Capital Is Greater Than the Outflow

question 212

Multiple Choice

When the inflow of foreign capital is greater than the outflow of domestic capital to other nations,a country runs a:

• A) dirty float.
• B) fixed exchange rate.
• C) capital surplus.
• D) capital deficit.

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Definitions:

Net Working Capital

The variance between a corporation's current assets and its current debts, highlighting its short-term financial status.

Operating Cash Flow

Operating Cash Flow is the cash generated from the normal operations of a business, reflecting its ability to generate sufficient positive cash flow to maintain and grow its operations.

Depreciation Expense

The allocated portion of the cost of a fixed asset, charged as an expense over its useful life.

Interest Expense

The expenses an entity faces for borrowing money.