If Econia Decreases Its Exports, Which of the Following Will

question 42

Multiple Choice

If Econia decreases its exports, which of the following will happen to its current account balance?

• A) The smaller inflow of funds will lower the balance.
• B) The smaller outflow of goods will lower the balance.
• C) The smaller outflow of funds will raise the balance.
• D) The smaller inflow of goods will raise the balance.

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Definitions:

Cost of Goods Sold

Cost of Goods Sold (COGS) indicates the direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Sales

The total income a company generates from selling goods or services before any expenses are subtracted.

Cost of Goods Sold

An expense measure that reflects the cost of the materials and labor directly tied to the production of goods sold by a company.

Inventory Purchases

The total amount of goods a company buys for the purpose of reselling them during a particular period, often used to replenish stock levels.