All of the Following Are Deficit Items in the Balance

question 222

Multiple Choice

All of the following are deficit items in the balance of payments accounts EXCEPT

• A) U.S. residents purchases of gold from foreign residents.
• B) U.S. tourists spending funds in Europe.
• C) exports of merchandise.
• D) U.S. purchases of foreign companies' stocks and bonds.

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Definitions:

Lease Cost

The expense incurred from leasing assets, such as machinery or office space, typically involving periodic payments.

Units

A measure of quantity, often used in production and inventory to describe the number of individual items.

Step-Variable Cost

Costs that change in identifiable steps with changes in activity, increasing with each step rather than continuously.

Fixed Cost

Costs that do not vary with the level of production or sales volume, such as rent, salaries, and insurance.