A Nation Has an Unfavorable Balance of Trade When

question 1

Multiple Choice

A nation has an unfavorable balance of trade when

• A)it has a surplus in its balance of payments
• B)it has a deficit in its balance of payments
• C)the value of its imports of goods is greater than the value of its exports of goods
• D)its current account is in surplus and its capital account is in deficit
• E)it has high tariffs

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Definitions:

Stock

Equity or shares representing ownership interest in a company or corporation, giving shareholders a claim on part of the company's assets and earnings.

Quorum

The minimum number of members of a deliberative assembly necessary to conduct the business of that group.

Shareholders

Individuals or entities that own shares in a corporation, granting them certain rights in the company, like voting on corporate matters.

Outstanding Shares

The total shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.