In One Year the United States Had a Current Account

question 235

Multiple Choice

In one year the United States had a current account deficit of −$461 billion. The balance on the capital account was −$6 billion. What was the balance on the financial account?

• A)+$467 billion
• B)−$467 billion
• C)+$455 billion
• D)−$461 billion

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Definitions:

Sales

The transactions involved in selling goods or services in the normal course of business, generating revenue for the company.

DOL

Degree of Operating Leverage; a measure of a company's fixed costs as a percentage of its total costs, indicating how earnings before interest and taxes (EBIT) change in response to a change in sales volume.

Contribution Margin

The amount of revenue remaining after deducting variable costs, used to cover fixed costs and generate profit.

Variable Cost

Expenses that vary depending on the amount of products or services a company generates.