A Country with a Positive Current Account Balance Has a Trade

question 58

True/False

A country with a positive current account balance has a trade deficit;that is,the outflow of money to pay for imports exceeds the inflow of money for sales of exports.

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Definitions:

Order Policy

Guidelines established by a company to determine minimum inventory levels, reorder points, and order quantities to manage inventory effectively.

Basic EOQ Model

The Economic Order Quantity model, a formula used to determine the optimal quantity of inventory to order, minimizing total inventory costs.

Ordering Cost

Expenses incurred in placing and processing orders for products or materials, including administrative costs and the cost of receiving and inspecting the items.

Carrying Cost

The total cost of holding inventory, including storage costs, insurance, and depreciation, among others.