A Country Experiencing a Current Account Surplus

question 55

Multiple Choice

A country experiencing a current account surplus:

• A)needs to borrow internationally.
• B)is able to lend internationally.
• C)must also have had a surplus in its overall payments balance.
• D)spends more than it earns on its merchandise and service trade, international income payments and receipts and international transfers.

Understand the components and purposes of the balanced scorecard, including its four standard perspectives.

Identify and describe the process of developing a balanced scorecard and the role of multifunctional teams in its creation.

Recognize how specific activities and performance measures relate to the different perspectives of the balanced scorecard.

Understand the concept of a strategy map and its differences from a measure map.

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Definitions:

Expansion

The phase of the business cycle where economic activities and production levels increase, leading to growth in GDP and employment.

Indexed Equity Mutual Fund

An equity mutual fund that holds a portfolio of stocks that matches their share (or weight) in a broad stock market index such as the S&P 500. The overhead of these funds is usually quite low because their expenses on stock trading and research are low.

Managed Equity Fund

An investment fund in which a manager or management team makes decisions about how to allocate assets in a portfolio of equities.

Operating Costs

Refers to the day-to-day expenses involved in running a business, such as rent, utilities, and payroll.