Which of the Following Would Contribute, Directly or Indirectly, to a Deficit

question 214

Multiple Choice

Which of the following would contribute, directly or indirectly, to a deficit in the capital account of the U.S.balance of payments?

• A)A British citizen buys stock in Ford.
• B)A British citizen buys a bond from Ford.
• C)Interest rates fall in the United States relative to their level in the rest of the world.
• D)Australian publisher Rupert Murdoch buys The New York Times.
• E)Developing countries become more stable and so borrow less from U.S.banks.

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Definitions:

Compensation Expense

Compensation expense is the total amount of salary, wages, bonuses, and benefits that a company recognizes for its employees' services during a period.

Options Pricing Model

A mathematical model used to determine the theoretical price of options contracts, taking into account factors like the stock price, strike price, volatility, and time to expiration.

Compensation Expense

The total cost that a company recognizes for paying its employees, including wages, benefits, and bonuses.

Turnover Calculations

A process of estimating the efficiency and effectiveness of an operation, typically in terms of how quickly inventory is sold or how often staff are replaced.