For Open Economies

question 38

Multiple Choice

For open economies,

• A) S = I.
• B) S = I + CA.
• C) S = I - CA.
• D) S > I + CA.
• E) S < I + CA.

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Definitions:

Operating Lease

A lease agreement that allows for the use of an asset but does not convey rights of ownership of the asset.

Financial Lease

A long-term lease agreement that allows the lessee to use an asset while essentially assuming both the risks and benefits of ownership.

Lessor

The owner of an asset in a leasing agreement. The lessor receives payments from the lessee.

Insure

The act of protecting against loss, damage, or liability through a contract with an insurance company that compensates the insured in the event of specified types of loss.