Under a Gold Standard, If a Country's Exports Exceed Its

question 154

Multiple Choice

Under a gold standard, if a country's exports exceed its imports, its gold stock _____, leading to a(n) _____ in expenditures and a(n) _____ in _____.

• A) declines; reduction; reduction; exports
• B) declines; increase; reduction; imports
• C) increases; increase; increase; imports
• D) increases; increase; reduction; imports

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Definitions:

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers for credit sales.

Inventory Turnover

A financial metric indicating how many times a company has sold and replaced its inventory over a specific period.

Quick Ratio

Current assets less inventories divided by current liabilities. A financial ratio that measures a firm’s liquidity, the ability to pay its bills in the short run, without depending on converting inventory into cash. Also called the Acid Test.

Current Ratio

The Current Ratio is a financial metric used to evaluate a company's ability to pay its short-term liabilities with its short-term assets, indicating liquidity.