The Difference Between the Payments and Receipts from International Transactions

question 156

Multiple Choice

The difference between the payments and receipts from international transactions in assets is represented in the

• A)official financing account.
• B)trade balance.
• C)capital account balance.
• D)current account balance.
• E)merchandise account.

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Definitions:

Stock Sells

The act of disposing of shares of stock or equity in a corporation, typically in exchange for cash or other compensation.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and is often used to assess the cost of funding.

Risk-Free Rate

The theoretical return of an investment with zero risk, often represented by the yield on government securities like U.S. Treasury bonds.

Beta

A metric for assessing the uncertainty, or inherent danger, of an individual security or collective investment compared to the market at large.