A Country's Financial Account Balance Decreases If

question 36

Multiple Choice

A country's financial account balance decreases if

• A)its current account balance increases.
• B)its income payment inflows on foreign assets decrease.
• C)its domestic residents working abroad reduce the income they send home to their families.
• D)foreigners increase their purchases of its existing assets.

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Definitions:

Current Liabilities

Financial obligations or debts a company must pay within a year or within its normal operating cycle.

Long-term Liabilities

Financial obligations of a business that are due for repayment more than one year in the future, such as bonds or long-term loans.

Current Liabilities

Financial obligations that a company is expected to pay within one year.

Accounts Payable

Money owed by a business to its suppliers shown as a liability on the company’s balance sheet.