Which of the Following Restrictions Implies That Investment Exceeds Private

question 48

Multiple Choice

Which of the following restrictions implies that investment exceeds private saving for a closed economy?

• A)The economy has no government.
• B)The economy's government is running a budget deficit.
• C)The economy's government is running a budget surplus.
• D)No restriction is necessary;investment and private saving are equal for all closed economies.

Comprehend the effects of changes in credit policy on sales, receivables, and profitability.

Recognize the role and impact of collection policies on a firm's financial health.

Understand the significance of inventory management in operations and its effect on a firm's financial performance.

Identify the considerations for holding marketable securities and managing idle cash.

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Definitions:

Incentive Fee

An incentive fee is a fee charged by a fund manager based on the fund's performance, encouraging the manager to achieve superior returns.

Benchmark

A standard or point of reference against which the performance of a security, mutual fund, or investment manager can be measured.

Management Fee

A charge paid to a company's managers for their services, often a percentage of managed assets or profits.

Net Return

The profit or loss from an investment after all expenses, including taxes, fees, and costs, have been subtracted.