Which of the Following Is an Example of an Outflow

question 49

Multiple Choice

Which of the following is an example of an outflow in the U.S.capital account?

• A) A foreign resident purchases a U.S. made car from a foreign dealer.
• B) A U.S. firm gives 90 days for a $1,000,000 note to be paid off by a French importer of U.S. goods.
• C) A U.S. firm pays salaries to employees based in Paris.
• D) A foreign firm receives a payment for exports from a U.S. firm.

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Definitions:

Place Utility

The value added to products through making them more accessible or convenient to consumers, often by changing their location.

Sandwich Stand

A food service establishment specializing in the preparation and sale of sandwiches.

Corporate Offices

Central or main offices where a company's executives, administrative tasks, and planning are conducted.

Exchange Process

The exchange process is the act of giving one thing and receiving another in return, often seen in transactions, trade, or communication.