If the Value of a Country's Exports Is Greater Than

question 65

Multiple Choice

If the value of a country's exports is greater than the value of its imports, it is:

• A)running a trade surplus.
• B)running a trade deficit.
• C)in an economic contraction.
• D)likely to find its investment spending greater than its level of saving.

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Definitions:

Convertible Debt

A type of bond or loan that can be converted into a predetermined amount of the company's equity, usually at the discretion of the debt holder.

LIFO Inventory

An inventory valuation method (Last In, First Out) where the most recently produced or acquired items are the first to be expensed as cost of goods sold, affecting the company's books during periods of inflation.

Bank Overdraft

A facility allowing a bank account holder to withdraw more money than is actually in their account, often used for short-term financing.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board that guide how financial transactions and other accounting events should be reported in financial statements.