Some Nations Establish Limits on the Amount of Earned and Invested

question 29

Multiple Choice

Some nations establish limits on the amount of earned and invested funds that can be withdrawn from it.These exchange controls are usually established by nations that:

• A)have a high trade surplus.
• B)are a part of larger trade agreements.
• C)are experiencing balance-of-payment problems.
• D)have an open economy.

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Definitions:

Quick Ratio

A measure of a company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.

Accounts Receivable

Open accounts owed to the business by trade customers.

North American Industry Classification System

A standardized system used by Canada, Mexico, and the United States to classify businesses and industries for the purpose of collecting, analyzing, and publishing statistical data.

Component Percentages

A financial analysis tool that expresses each line item on a financial statement as a percentage of a base figure, allowing for comparability.