If the Balance on the Current Account in the United

question 263

Multiple Choice

If the balance on the current account in the United States is $750 billion,which of the following is most likely to be true?

• A)The balance on the financial account is negative.
• B)The trade balance is negative.
• C)Net foreign investment is negative.
• D)The balance on the capital account is positive.

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Definitions:

Average Sale Period

The average sale period measures the average amount of time it takes for a business to convert its inventory into sales.

Cost of Goods Sold

The total cost of manufacturing and delivering a product to customers, typically including material, labor, and overhead expenses.

Inventory

Materials and goods a business holds for the purpose of resale or as input in its production process.

Debt-to-Equity Ratio

A measure of a company's financial leverage, determined by dividing its total liabilities by stockholders' equity.