Which of the Following Transactions Will Decrease the U

question 124

Multiple Choice

Which of the following transactions will decrease the U.S.current account deficit?

• A)A U.S.corporation builds a new factory in Seoul,South KoreA.
• B)Dutch tourists visiting Los Angeles.
• C)U.S.department stores buy shoes from Italy.
• D)American firms invest in Tokyo real estate.
• E)U.S.tourists travel in Canada.

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Definitions:

Disbursements

Payments made by a business, often involving cash outflows for operating expenses, purchasing assets, or repaying debt.

Minimum Cash Balance

The lowest amount of cash a company seeks to maintain in its accounts to ensure liquidity and cover short-term obligations.

Cash Budget

An estimation of cash inflows and outflows for a business or individual for a specific period.

Credit Sales

Sales made on terms that allow the buyer to pay the seller at a later date, typically recorded as accounts receivable.