If There Is a Steady Rise in the Ratio of Export

question 22

Multiple Choice

If there is a steady rise in the ratio of export to import prices for a country, it implies that:

• A) the country is unable to fund its imports easily.
• B) there has been an improvement in the terms of trade.
• C) GDP growth has slowed down.
• D) there has been a steady decline in the command GDP.

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Definitions:

Accounting Irregularity

Instances of non-compliance with accounting standards or practices, often leading to misstated financial statements.

Financial Statement Data

Quantitative information derived from a company's financial statements, used for analysis and decision-making purposes.

Loan Covenants

Loan covenants are conditions that lenders put on borrowing agreements to limit the actions of the borrower, protecting the lender’s interests.

Efficient Market Investors

Individuals or entities that operate under the assumption that all available information is already reflected in securities prices, indicating that it's hard to consistently achieve higher returns than the overall market.