Use the Following to Answer Questions

question 202

Multiple Choice

Use the following to answer questions :
-(Table: Investment Spending, Private Spending, and Capital Inflows) Northlandia has a _____, while Southlandia has a _____.

• A)balanced budget; budget deficit
• B)budget deficit; balanced budget
• C)budget surplus; balanced budget
• D)balanced budget; balanced budget

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Definitions:

Disbursements

Money paid out by a business or an organization for various purposes, including expenses, investments, and dividends.

Optimal Initial Cash Balance

The ideal amount of cash that a company should hold at the start of a period to efficiently meet its operational needs and investment opportunities, while minimizing holding and shortage costs.

Transferring Funds

Transferring funds involves moving money from one account to another, either within the same financial institution or across different institutions.

Optimal Initial Cash Balance

The ideal amount of money a business should hold at the start to minimize costs while avoiding liquidity issues.