Which of the Following Is a Credit Item (+)In the U.S.balance

question 27

Multiple Choice

Which of the following is a credit item (+) in the U.S.balance of payments?

• A)U.S.companies sell merchandise abroad.
• B)Foreign companies sell merchandise to U.S.consumers.
• C)U.S.consumers send money to foreign companies.
• D)Immigrants to the United States send presents of money back to their families in their native countries.
• E)Immigrants to the United States send presents of goods back to their families in their native countries.

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Definitions:

Cash Outflows

Expenditures or payments made by a business, leading to a decrease in cash assets, including operational costs, investments, and financing activities.

IRR

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments, calculated as the rate of return that sets the net present value of all cash flows from a particular project equal to zero.

Equivalent Annual Annuity

A financial calculation used to compare projects with different lifespans, by converting their net present values into equal yearly payments.

Cost of Capital

The essential yield required to validate the investment in a project involving capital budgeting, like erecting a new manufacturing plant.