One Way by Which the World Bank Converts Gross National

question 23

Multiple Choice

One way by which the World Bank converts gross national income (GNI) figures to dollars is to take the GNI in a local currency and convert using the exchange rate, averaged over a three-year period in order to smooth out the effects of currency fluctuations. Which of the following is a shortcoming of this method for international comparisons of standards of living?

• A) Currency exchange rates may fluctuate drastically from year-to-year.
• B) A country could have a relatively high standard of living but, for a variety of reasons, a low exchange rate.
• C) This method cannot be applied to countries that have fixed exchange rates.
• D) The method does not take into account trade conducted on the basis of barter.

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Definitions:

Radioscopy

The examination of the internal structures of the body using X-rays or other high-energy radiation, often conducted in real time imaging like fluoroscopy.

Doppler Echocardiography

A test that uses sound waves to create images of the heart and its blood flow, employing the Doppler effect to assess the speed and direction of blood.

Blood Flow Velocity

The speed at which blood moves through the vessels, which can vary depending on vessel size, blood viscosity, and cardiac output.

Cardiac

Relating to the heart and its functions or diseases.