It Is Not Surprising That Financially Open Economies Are Able

question 104

Multiple Choice

It is not surprising that financially open economies are able to:

• A) enjoy higher levels of consumer spending.
• B) recycle investment funds by repaying interest with increased income from production.
• C) delink savings and investment, thus increasing consumption smoothing.
• D) get lower rates of interest on borrowing.

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Definitions:

Days' Sales in Inventory

A financial metric indicating the average number of days it takes for a company to turn its inventory into sales.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.

Total Asset Turnover

A financial ratio that measures a company's efficiency in using its assets to generate sales or revenue.

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a given period, indicating the efficiency of inventory management.