If a French Company Exports $2 Million of Machinery to Italy

question 61

Multiple Choice

If a French company exports $2 million of machinery to Italy and French tourists spend $2 million at Italian beaches,the French merchandise trade balance ________,and the French financial account balance ________.

• A)rises; rises
• B)rises; is unchanged
• C)is unchanged; is unchanged
• D)is unchanged; rises

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Definitions:

Priority Claim

A claim that is given preference or superior right in the payment of debts, often in bankruptcy proceedings.

Writ of Execution

A court order granted to enforce the judgment of the court, allowing for the seizure of property or assets.

Judgment

encompasses the final decision or order issued by a court regarding the legal matters before it, determining the rights and obligations of the parties involved.

Alimony

A financial support paid by one ex-spouse to the other after a divorce or legal separation.