An Example of a Deficit Item on the U

question 166

Multiple Choice

An example of a deficit item on the U.S. balance of payments is

• A) the sale of a spark plug made by a U.S. firm in Michigan to a Nissan plant in Tennessee.
• B) the purchase of Japanese yen by a U.S. firm.
• C) a deposit in a bank in Chicago by the government of Saudi Arabia.
• D) the payment of a dividend by a British firm to a U.S. family.

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Definitions:

Temporary Advantage

An advantage or benefit that an organization holds for a short period of time, often due to a unique product, service, or situation.

Knowledge Dissemination

The process of spreading information and insights across different stakeholders, including individuals, organizations, and communities, to enhance understanding and application.

Geo-political Standing

The position or status of a country or region in relation to its political and geographical characteristics, influencing its relations with others.