On the Same Day, Julia Sells a 2001 Model Commodore

question 70

Multiple Choice

On the same day, Julia sells a 2001 model Commodore for $19,000 and buys another one in the same condition for $16,000. This is an example of:

• A) intermediation.
• B) short- selling.
• C) arbitrage.
• D) speculation.

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Definitions:

Trade Surplus

A situation where a country's exports exceed its imports for a given period, leading to a positive balance of trade.

Exports

Items or services dispatched from one country to another for the intent of trade or sale.

Imports

Commodities or offerings that are carried from abroad into a nation with the intent to sell them.

Trade Deficit

A condition where the value of a nation's imports surpasses that of its exports, leading to a trade deficit.