The Current Account Is

question 84

Multiple Choice

The current account is

• A) the reserve assets created by the International Monetary Fund for countries to use in settling international payment obligations.
• B) the price of one nation's currency in term of the currency of another country.
• C) a category of the balance of payments transactions that measures flows of real and financial assets.
• D) a category of the balance of payments transactions that measures the exchange of merchandise, the exchange of services, and unilateral transfers.

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Definitions:

Collection Period

The average number of days it takes a company to collect payments after a sale has been made.

Aging Schedule

A table or report that shows the amounts of accounts receivable broken down into categories by the length of time they have been outstanding.

Credit Policy

Guidelines that a company follows to determine credit terms for its customers, including payment deadlines, interest rates, and criteria for extending credit.

Marketable Securities

Marketable securities are liquid financial instruments that can be quickly converted into cash at market value, such as stocks, bonds, or treasury bills.