In the US Balance of Payments, U

question 201

Multiple Choice

In the U.S. balance of payments, U.S. purchases of assets abroad are a(n)

• A) U.S. dollar outflow.
• B) U.S. dollar inflow.
• C) current account item.
• D) inpayment.

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Definitions:

EBIT

Earnings Before Interest and Taxes, also known as EBIT, is a way to evaluate a company's profit without considering tax and interest expenses.

Financial Risk

The likelihood of experiencing a loss of money in a business operation or investment.

EBIT

A financial metric, Earnings Before Interest and Taxes, calculates a business's income by including all earnings and expenditures with the exception of those from interest and taxes.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the percentage of fixed to variable costs a company has.