Which of the Following Transactions Represents an Inflow of Money

question 259

Multiple Choice

Which of the following transactions represents an inflow of money on the financial account of the U.S. balance of payments?

• A)Oil is imported from Venezuela.
• B)United States firms pay dividends to foreigners.
• C)United States citizens purchase foreign securities.
• D)A Canadian firm increases its direct investment in its U.S. branch.

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Definitions:

Yield Pricing

A strategy in price management where prices are adjusted based on demand to maximize revenue.

Differential Analysis

A financial technique used to evaluate decisions by examining the costs and benefits of alternative actions and their impacts on company finances.

Bottleneck

A point of congestion in a production system that occurs when workloads arrive too quickly for the production process to handle, thereby limiting throughput.

Manufacturing Machinery

Fixed assets involved in the production process, including machines and tools used to transform raw materials into finished products.