Which of the Following Is Not Counted in the GNP

question 66

Multiple Choice

Which of the following is not counted in the GNP of the United States?

• A) The wage of a U.S. citizen who works in a foreign country for a foreign firm.
• B) The interest earned by a U.S. bank on loans to a business firm located in Brazil.
• C) The profit earned by a restaurant located in the United States but owned by a Mexican company.
• D) The value of services that are produced by state and local governments in the United States.

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Definitions:

Yields

The income return on an investment, such as the interest or dividends received, usually expressed as an annual percentage.

T-Bill

Short for Treasury Bill, a short-term government securities issued with a maturity of less than one year, considered a safe investment.

Interest Rates

They are the charges lenders impose on borrowers for the use of financial assets, restated here to highlight their critical role in finance and borrowing.

Simple Interest

Interest is calculated merely on the principal or on what part of the principal is still owed.