Which of the Following Statements About the World Trade Organization

question 4

Multiple Choice

Which of the following statements about the World Trade Organization (WTO) is most accurate?

• A) The WTO acts as an agent in trade negotiations between its members and the remainder of the world.
• B) The 39 member countries of the WTO account for about 25 percent of world trade.
• C) The WTO attempts to mitigate trade wars between countries.
• D) The WTO uses legal scholars who can only issue nonbinding recommendations.
• E) The WTO was formed by the United Nations.

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Definitions:

Current Ratio

A financial metric indicating a firm's capability to settle short-term debts due within a year, derived by dividing current assets by current liabilities.

Current Assets

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

Short-Term Solvency

A financial metric indicating a company's ability to meet its short-term obligations, highlighting liquidity.

Current Ratio

A financial ratio indicating a firm's capacity to meet its short-term liabilities using its existing assets.