Which of the Following Statement Is True

question 26

Multiple Choice

Which of the following statement is true?

• A)In each period,except for measurement errors,the current account balance and the capital account balance must sum to zero.
• B)In each period,except for measurement errors,the sum of the current account balance and the capital account balance must be positive.
• C)In each period,except for measurement errors,the sum of the current account balance and the capital account balance must be negative.
• D)In each period,except for measurement errors,the sum of the current account balance and the capital account balance may be positive or negative.

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Definitions:

Project Rejection

The process of declining to move forward with a project after evaluating its feasibility, risks, and potential returns.

Operating Asset

An asset used in the daily operations of a business that contributes to generating income.

Plant Expansion

The process of increasing the capacity or capability of an existing manufacturing or production facility.

Return On Investment

measures the gain or loss generated on an investment relative to the amount of money invested, indicating the efficiency of the investment.