Current Account Deficits

question 65

Multiple Choice

Current account deficits:

• A)also result in a capital account deficit of the same size.
• B)result in a capital account surplus of the same size.
• C)may result in either a capital account surplus or deficit.
• D)result because exports exceed imports.
• E)result because government spending exceeds tax revenue.

Understand the roles and responsibilities within a buying center.

Identify the different types of buying situations: new buy, modified rebuy, and straight rebuy.

Recognize the influence and importance of gatekeepers in the buying process.

Analyze how influencers affect the buying decision by defining specifications.

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Definitions:

Required Return

The minimum amount of profit an investor expects to achieve from an investment, considering its risk.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to analyze the profitability of an investment or project.

Net Present Value

A calculation used in finance that measures the profitability of an investment by summing the present values of its cash flows minus initial investment.