When a Nation's National Saving Falls Short of Its Domestic

question 71

Multiple Choice

When a nation's national saving falls short of its domestic investment,it must be

• A)experiencing a government budget surplus.
• B)experiencing a government deficit.
• C)a net lender to foreign nations.
• D)a net borrower from foreign nations.

---

Definitions:

Credit Risk

The risk of loss due to a borrower's failure to make payments on any type of debt.

FOB Destination

A shipping term indicating that the seller is responsible for the cost of transporting goods to the buyer's designated location; ownership transfers upon delivery.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Acid-Test Ratio

A financial metric that measures a company's ability to cover its current liabilities with its most liquid assets.