Microsoft, a Seattle Software Company, Purchases a New Office Building

question 236

Multiple Choice

Microsoft, a Seattle software company, purchases a new office building in Vancouver. In the U.S. balance of payments account, this transaction is entered as a payment _____ foreigners in the _____ account.

• A)from; current
• B)to; financial
• C)to; current
• D)from; financial

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Definitions:

Disbursements

Payments made by a business, often related to operational expenses or loan repayments.

Optimal Average Cash Balance

The ideal level of cash a company seeks to maintain to minimize the costs associated with holding too much or too little cash.

Weekly Interest Rate

Interest calculated and applied on a weekly basis, often referred to in terms of loans or savings.

BAT Model

Behaviorally Adjusted Time (BAT) Model refers to a calculation method designed to account for the inefficiencies human behavior introduces into the financial markets.