Which One of the Following Is Not a Major Factor

question 72

Multiple Choice

Which one of the following is not a major factor that contributed to large trade deficits in the United States in the period 2002-2007?

• A) a declining saving rate coupled with a rising investment rate in the U.S.
• B) a U.S. economy growing faster than its trading partners
• C) large trade deficits with OPEC economies
• D) flexible exchange rate between the U.S. dollar and the Chinese yuan

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Definitions:

Subsidiary Ledger

A detailed ledger that contains the supporting documents for a specific main account, such as accounts payable or receivable, to keep the general ledger uncluttered.

General Journal

A primary accounting record where financial transactions are initially recorded, before posting to specific accounts in the ledger.

Credit Entries

Accounting entries that increase liabilities, equity, and income accounts, or decrease asset and expense accounts.

Special Journal

A financial journal designed for recording a specific type of transaction in a more efficient manner, such as sales or purchases.