The Effect That a Gift Given to a U

question 24

Multiple Choice

The effect that a gift given to a U.S. citizen from a foreign resident will have on the balance of payments is to

• A) increase the current account balance.
• B) have no effect on the balance of payments if the gift was made in the U.S.
• C) have no effect on the balance of payments if the gift was made by a foreign country.
• D) decrease the balance of payments.

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Definitions:

Computerization

The process of equipping tasks, processes, or systems with the capability to be performed or monitored by a computer.

Unit Prices

Unit prices are the costs assigned to a single unit of a product or service, allowing buyers to compare costs and make informed purchasing decisions.

Beginning Inventory

The cost of items on hand ready for sale at the opening of an accounting cycle.

Merchandise

This refers to goods or stock that a retail store has on hand to sell to customers, effectively the items available for sale in a commercial setting.