A Country That Exports Less Than It Imports Will

question 42

Multiple Choice

A country that exports less than it imports will:

• A) have a current account deficit and a capital account deficit.
• B) have a current account surplus and a capital account deficit.
• C) have a current account surplus and a capital account surplus.
• D) have a current account deficit and a capital account surplus.

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Definitions:

Residual Income

Residual Income (RI) is the net income an organization generates beyond the minimum rate of return on its investments.

Operating Assets

Assets that are used in the day-to-day operations of a business to generate income, including both current and long-term assets.

Net Operating Income

A financial metric that calculates a company's profitability by subtracting operating expenses from its total revenue, excluding taxes and interest.

Residual Income

The amount of income that an individual has after all personal debts and expenses have been paid.