Direct Conversion Avoids Some of the Risk of Parallel Conversion

question 41

True/False

Direct conversion avoids some of the risk of parallel conversion because the old system remains in service while some or all of the new system is activated.

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Definitions:

Current Account

A component of a country's balance of payments that measures the trade balance plus net income and direct payments between countries.

Flows of Funds

The movements of money between sectors of an economy, showing how funds are used and where they come from.

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.

Balance of Payments

A financial statement that summarizes a country’s transactions with the rest of the world, including imports, exports, and capital flows.