Which One of the Following Will Not Directly Affect the U.S

question 73

Multiple Choice

Which one of the following will not directly affect the U.S. balance on current account?

• A) an increase in U.S. goods imports
• B) a decrease in U.S. net investment income
• C) an increase in U.S. purchases of assets abroad
• D) an increase in U.S. imports of services

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Definitions:

Safety Stock

Safety stock is an additional quantity of an item held in inventory to reduce the risk of stockouts and production halts, serving as a buffer against demand fluctuations or supply delays.

Maximum Inventory

The highest quantity of goods that a company aims to keep in stock, considering factors like storage space and cash flow constraints.

Memory Chips

Electronic components that store digital data, used in various computing devices for temporary or permanent data storage.

Quantity Discount

A reduction in price offered to a buyer when purchasing goods in larger quantities, serving as an incentive for bulk purchases.