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Off-Balance-Sheet Items Often Are Called Contingent Assets and Liabilities Because

question 26

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Off-balance-sheet items often are called contingent assets and liabilities because they may, or may not, affect the balance sheet in the future.


Definitions:

Price Ceiling

A legal maximum on the price at which a good can be sold.

Exchange Rates

The value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for another currency.

Net Exports

The difference between a nation's total exports and its total imports.

Net Capital Outflow

A comparison between the activity of local investors buying abroad and foreign investors buying within the national borders.

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