The Accompanying Table Contains Hypothetical Data for the U

question 281

Multiple Choice

$$\begin{array} { | l | r | } \hline \text { U.S. goods exports } & + \$ 390 \\\hline \text { U.S. goods imports } & - 498 \\\hline \text { U.S. service exports } & + 133 \\\hline \text { U.S. service imports } & - 107 \\\hline \text { Net investment income } & + 12 \\\hline \text { Net transfers } & - 22 \\\hline \text { Capital account } & - 5 \\\hline \text { Foreign purchases of U.S. assets } & + 156 \\\hline \text { U.S. purchases of foreign assets } & - 59 \\\hline\end{array}$$ The accompanying table contains hypothetical data for the U.S. balance of payments in a year. All ?gures are in billions of dollars. The ?gure for net transfers indicates that the United States

• A) received a net public and private transfer of $22 billion from the rest of the world.
• B) sent a net public and private transfer of $22 billion in remittances to the rest of the world.
• C) sent a net private transfer of $22 billion to the rest of the world.
• D) received a net private transfer of $22 billion from the rest of the world.

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Definitions:

Potential Impacts

Possible effects or outcomes that may occur as a result of a specific action or event.

Basic Earnings

The net income divided by the number of outstanding shares, representing the earnings available to shareholders.

Price/Earnings Ratio

A valuation measure comparing the current share price of a company to its per-share earnings, often used to assess if a stock is over or undervalued.

Cash Flow Per Share

A measure of a firm's financial flexibility, calculated as operating cash flow divided by the number of outstanding shares.