Question

A favorable balance of payments means that a. imports exceed exports. b. payments exceed trade. c. exports exceed imports. d. total receipts exceed total payments. e. exports and other payments exceed imports and other receipts.

Answer 1

Answer:

The correct answer is letter "D": total receipts exceed total payments.

Explanation:

When an entity's after-taxed incomes are greater than its expenses, the firm has a favorable balance. It implies the company has been able to process sales at a higher level than the costs of its operations. Thus, the company will have funds to reinvest in the business or to invest in new ventures.