If Canada's Index of Import Prices Is 250 and the Index

question 73

Multiple Choice

If Canada's index of import prices is 250 and the index of export prices is 200,then the index of the terms of trade is

• A)0.80.
• B)1.25.
• C)12.50.
• D)80.00.
• E)125.00.

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Definitions:

Principal

The amount borrowed or invested.

Accrued Interest

Interest that has been incurred but not yet paid, reflecting money owed on loans or credit extended.

Dishonored Note

A dishonored note is a promissory note that has not been paid upon its maturity date.

Journal Entries

Records of financial transactions in the chronological order by which they occur, entered in the accounting records.