If the Value of a Nation's Merchandise Exports Exceeds Merchandise

question 143

Multiple Choice

If the value of a nation's merchandise exports exceeds merchandise imports, the nation is running a

• A) capital account deficit.
• B) capital account surplus.
• C) balance of trade surplus.
• D) balance of trade deficit.

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Definitions:

Best Efforts

A commitment to perform to the best of one's capabilities but without guaranteeing a specific outcome.

Common Stock

A type of equity security that represents ownership in a corporation and entitles the holder to vote at shareholders' meetings.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a reduction in per unit cost.

Issuance Size

Refers to the total amount of securities, such as bonds or stocks, that an entity offers to the public for sale.