When the Balance of Trade Is in Balance, We Know

question 35

Multiple Choice

When the balance of trade is in balance, we know with certainty that

• A) the value of all debit transactions equals the value of all credit transactions.
• B) the value of exports of goods equals the value of imports of goods.
• C) the value of capital exports equals the value of capital imports.
• D) the value of exports of goods and services equals the value of imports of goods and services.

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Definitions:

Accounts Receivable

Accounts receivable represents money owed to a business by its customers for goods or services delivered but not yet paid for.

Business Activities

Various actions undertaken by a company to operate and manage its business, including operating, investing, and financing activities.

Operating

Pertains to the day-to-day activities involved in managing a business, including production, sales, and administration.

Financing

The act of providing funds for business activities, making purchases, or investing, through various means like loans, credit, or equity.