The Relation Between a Country's Level of Saving and Investment

question 75

Multiple Choice

The relation between a country's level of saving and investment:

• A)affects its trade balances.
• B)does not affect an open economy.
• C)has often been used to correct a trade deficit but not a trade surplus.
• D)pertains to trade surpluses only.

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Definitions:

Receivables Turnover

A financial metric that measures how efficiently a company collects cash from its customers by dividing net credit sales by average accounts receivable.

Collection Period

The average number of days it takes for a business to receive payments from its customers after a sale has been made.

Accounts Receivable

Represents the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Statement Of Cash Flows

An accounting statement that illustrates the influence of changes in balance sheet accounts and earnings on the flow of cash and cash equivalents, categorized by operating, investing, and financing activities.