The Current Account Is

question 84

Multiple Choice

The current account is

• A) the reserve assets created by the International Monetary Fund for countries to use in settling international payment obligations.
• B) the price of one nation's currency in term of the currency of another country.
• C) a category of the balance of payments transactions that measures flows of real and financial assets.
• D) a category of the balance of payments transactions that measures the exchange of merchandise, the exchange of services, and unilateral transfers.

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Definitions:

Long-Term Liabilities

Liabilities that will not be due for a long time (usually more than one year).

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or undervalued.

Annual Earnings

The total profit a company generates in one fiscal year before taxes and other deductions.

Accounts Receivable Turnover

A measure of how frequently during the year the accounts receivable are being converted to cash, computed as sales divided by average accounts receivable.