Which of the Following Is Included in Both the Balance

question 46

Multiple Choice

Which of the following is included in both the balance of trade and the balance of payments?

• A) exports
• B) earnings on domestic assets owned by foreign residents
• C) international capital movements
• D) earnings by domestic residents on assets located abroad

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Definitions:

Tax Liability

The total amount of tax owed to a taxing authority, such as the IRS, based on taxable income and tax rate.

Personal and Dependency

Terms related to exemptions that can be claimed on tax returns for oneself and for dependents, affecting taxable income.

Exemption

Deductions allowed by law to reduce taxable income based on the taxpayer and dependents.

Married Couple

Two individuals legally united in marriage, whose marital status can affect their tax filings, legal rights, and other societal entitlements.