The Table Above Gives Data on the U

question 23

Multiple Choice

$\begin{array} { l c } \hline \text { Variables } & \text { (billions of dollars) } \\\hline \text { Imports of goods and services } & 1,000 \\\text { Exports of goods and services } & 900 \\\text { Net interest } & - 100 \\\text { Net transfers } & 0 \\\text { Foreign investment in the United States } & 1,190 \\\text { U.S. investment abroad } & 1,000 \\\text { Decrease in U.S. official reserves } & 10 \\\hline\end{array}$
The table above gives data on the U.S. balance of payments in 2019.
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Is the United States a debtor or a creditor nation in 2019?

• A)neither a creditor nor debtor nation
• B)a debtor nation
• C)a creditor nation
• D)both a creditor nation and a debtor nation
• E)More information is needed to determine if the United States is a debtor or creditor nation.

Comprehend the impact of various financing strategies on a firm's risk and profitability.

Analyze the trade-offs between short-term and long-term financing decisions.

Understand the terms and conditions of different types of short-term credit agreements.

Recognize the advantages and disadvantages of various short-term funding options.

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Definitions:

Imported Watches

Timepieces that are brought into a country from abroad for sale.

Free-Trade Policies

Strategies and agreements between countries to allow goods and services to be traded with fewer restrictions or tariffs.

Importer

An individual or entity that buys goods or services from another country for use, resale, or processing within the importer's home country.

Domestic Price

Domestic price is the price of goods or services within a country, unadjusted for international trade effects or exchange rates.