Which of the Following Could Result from a Balance-Of-Trade Deficit

question 23

Multiple Choice

Which of the following could result from a balance-of-trade deficit?

• A)The value of the dollar increases,so Americans can buy more goods from other countries for the same amount of money.
• B)The value of the dollar declines,so Americans have to pay more for goods from other nations.
• C)The value of the dollar increases,making American products cheaper abroad,thereby increasing our exports.
• D)The value of the dollar declines,which makes American products more expensive abroad,thereby decreasing our exports.

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Definitions:

Cost Of Goods Sold

The costs directly related to the creation of products sold by a company, including expenses for raw materials and wages.

Worksheet

A paper or electronic tool used by accountants to gather information for adjusting entries and preparing financial statements.

Trial Balance

A list of accounts and their balances at a given time.

Terms 2/10 N/30

Terms 2/10 N/30 is a commercial credit term indicating that a buyer can deduct 2% of the invoice amount if payment is made within 10 days; otherwise, the full invoice amount is due in 30 days.