If a Country Is Currently Borrowing More from the Rest

question 137

Multiple Choice

If a country is currently borrowing more from the rest of the world than it is lending to the rest of the world, the country is a

• A) creditor nation.
• B) net lender.
• C) debtor nation.
• D) net borrower.

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Definitions:

Simple Interest

Interest calculated on the principal portion of a loan or deposit without compounding.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories, and meeting other short-term liabilities.

Simple Interest

Interest computed solely on the initial sum or on the outstanding part of that initial sum.

Discount

A reduction applied to the regular price of goods or services, usually to incentivize purchase.