A Recommended Policy for DVCs to Implement That Promotes Economic

question 115

Multiple Choice

A recommended policy for DVCs to implement that promotes economic growth is

• A)establishing realistic policies for exchange rates.
• B)obtaining more low-interest loans from the U.S. government.
• C)encouraging more tariffs and quotas to protect DVC businesses.
• D)discouraging direct foreign investment to make DVCs more self-sufficient.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health of the business.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the business cycle, whichever is longer.

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.