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RoseWind [281]
3 years ago
8

An article in the Wall Street Journal refers to​ "debt-strapped emerging markets already struggling with​ current-account defici

ts." ​Source: Anjani​ Trivedi, "Emerging Markets Suffer Largest Outflow in Seven​ Years," Wall Street Journal​, June​ 12, 2015. We would expect that countries running large current account deficits also have substantial foreign debts because the sum of the
A. current account and the capital account must equal zero.
B. trade account and the financial account must equal zero.
C. current account and the financial account must equal zero.
D. capital account and the financial account must equal zero.
Business
1 answer:
Marrrta [24]3 years ago
5 0

Answer: The answer is A

Explanation:

The balance of payment is the relationship between a country's receipt from other countries and payments to other countries. In short, the balance of payment is a country's statement of income and expenditure in the international account. It includes payments for both visible and invisible items of trade. Linking the two sides payment and receipt or debit or credit of the balance of payments, we therefore have two sections of the account which are

Current Account : The current account deals with the payment for currently produced goods and services. The current account shows income and expenditure on visible and invisible imports and exports as well as payments and receipt on banking, shipping, insurance, and other services.

Capital Account : This shows the actual transfer of money from one country to the other.money may be transferred from one country to the other for a number of reasons .It may be used for setting up industries (investment ) and it may be a direct loan. The balance of payment could be favourable or unfavourable, a favourable balance of payment is the excess of receipt from export over payment for imports, its unfavourable if the payments for imports exceed the receipt for export. This unfavourable balance of payment put a country in a debtor position and requires the movement of resources outside the country to pay the deficit balance. A favourable balance changes the direction of the resources flow in favour of the creditor nation.

In principle, the balance of payment must always balance just as the two sides of a balance sheet must agree in total. This shows the movement of funds or other resources from one country to another,and the direction of flow of funds being determined by the debtor and creditor status of the country.

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padilas [110]
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(idk if this is right but i hope it is) 
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3 years ago
Boron company has net sales of $60,000; beginning inventory of $7,000; purchases of $35,000 and ending inventory of $5,000. The
SCORPION-xisa [38]

Net sales for the Boron Company were $60,000, with $7,000 in beginning inventory, $35,000 in purchasing, and $5,000 in ending inventory. $37,000 is the cost of the sold goods.

Cost of Goods Sold is calculated as Beginning Inventory minus Purchases minus Ending Inventory.

$7000+$35000-$5000=$37000

The direct costs of producing the products that a business sells are referred to as its cost of goods sold (COGS). The cost of the labor and materials directly employed to make the good are also included in this sum. It doesn't include indirect expenditures like those associated with the sales staff and distribution. As a company's gross profit is calculated by subtracting COGS from its revenues, COGS is a crucial financial statement statistic.

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7 0
1 year ago
What statement about pawn shops is correct?
Gnom [1K]
The correct answer for the question that is being presented above is this one: "B. A pawn shop has lower interest rates than banks." The statement about a pawn shop that is correct is this one: <span>B. A pawn shop has lower interest rates than banks.</span>
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3 years ago
What are the goals when a government uses expansionary monetary policy?
Ainat [17]

Answer:

stimulating economic growth

Explanation:

Expansionary monetary policies are the action by the Fed that aims at stimulating economic growth.  They aim at increasing the money supply in the economy. Examples of expansionary monetary policies are open market purchases, reduction of the discount rate, and reduction in the reserve requirement ratio.

Expansionary monetary policies stimulate economic growth by encouraging investments and consumption spending. When the discount rate is reduced, interest rates reduce automatically. Banks will loan out more when they a lot of money in their custody. Expansionary monetary policies are applied when there is a slowdown in economic growth.

5 0
3 years ago
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