Which of the Following Statements Is TRUE About the Role

question 258

Multiple Choice

Which of the following statements is TRUE about the role of gifts given to U.S. citizens from foreign residents?

• A) Gifts are not included in the balance of payments because of the nature of the gift.
• B) Gifts are only included in the balance of payments if the gift is given to a government official.
• C) Gifts are included in the balance of payments.
• D) Gifts given to U.S. citizens are not included in the balance of payments but gifts given to foreigners are included.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from total revenue, indicating the firm's profitability over a specific period.

Investment Turnover

A measure of the efficiency with which a company or portfolio generates revenue from its investments, calculated as sales divided by average invested assets.

Return On Investment

An evaluation tool for assessing the profit or efficiency of an investment, which involves dividing the investment's net profit by its cost.

Investment Center

A business unit or segment that is responsible for its own revenues, expenses, and investments, and its performance is measured by its return on investment (ROI).