Identify a True Statement About Balance of Payments

question 17

Multiple Choice

Identify a true statement about balance of payments.

• A)Balance of payments includes foreign borrowing and lending.
• B)Balance of payments surplus indicates more money flowing out than in.
• C)Balance of payments excludes overseas investments.
• D)Balance of payments deficit indicates more money flowing in than out.

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Definitions:

Accrued Interest

The interest that has been earned but not yet paid, accumulating on loans, bonds, or any other financial instruments over a period of time.

Notes Receivable

Financial assets representing amounts owed to a company by debtors, typically evidenced by formal instruments with specified payment terms.

Factoring Fee

A charge assessed for the service of factoring, where a business sells its receivables to a third party at a discount.

Accounts Receivable

The money owed to a business by its customers for goods or services delivered or used but not yet paid for, considered a current asset on the balance sheet.