The Difference Between a Country's Exports and Imports of Goods

question 170

Multiple Choice

The difference between a country's exports and imports of goods alone (not including services) is the:

• A) merchandise trade balance.
• B) balance of payments on good and services.
• C) balance of payments on current account.
• D) current account.

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Definitions:

FIFO System

First-In, First-Out method, an inventory valuation strategy where the oldest items are sold or used first.

Cost Method

An accounting approach used for recording investments, where the investment is recorded at cost and adjusted only for dividends received and not for changes in market value.

Interest Free

A loan or credit arrangement where the borrower is not required to pay any interest on the borrowed amount.

Consolidated Balance Sheet

A financial statement that aggregates the financial positions of a parent company and its subsidiaries, presenting as if the group were a single entity.