Perfect Mobility of Factors of Production Is a Requirement for

question 11

Multiple Choice

Perfect mobility of factors of production is a requirement for

• A) Spatially concentrated trade zones
• B) Optimal currency areas
• C) Commodity money standards
• D) Free floating exchange rates

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Definitions:

Factoring

A financial transaction and a type of debtor finance where a business sells its accounts receivable to a third party (the factor) at a discount.

Net Working Capital

measures a company's short-term financial health by subtracting its current liabilities from its current assets, indicating the liquidity available to fund day-to-day operations.

Accounts Receivable

Unsettled financial obligations to a corporation from its customers for products or services already delivered or engaged in, awaiting payment.

Accounts Payable

Money owed by a business to its suppliers shown as a liability on the company’s balance sheet.