If Two Countries Engage in Trade with One Another, What

question 39

Multiple Choice

If two countries engage in trade with one another, what determines which country will gain the most from trade?

• A) exchange ratio
• B) exchange rate
• C) balance of payments
• D) terms of trade

---

Definitions:

Mutual Fund Investors

Individuals or institutions that invest in a mutual fund, pooling money together to be managed by professional fund managers.

Technical Traders

Investors who use technical analysis and historical price activity and volumes of the markets to predict future price movements.

Market Timers

Investors who attempt to achieve higher returns by predicting future market movements and adjusting their investments accordingly, often at higher risk.

Relative Strength

A momentum investing technique that compares the performance of a security to that of the overall market or a specific benchmark.