A Fall in the Value of the Pound May NOT

question 80

Multiple Choice

A fall in the value of the pound may NOT help drive export growth if:

• A) the UK reduces interest rates.
• B) the UK's trading partners are experiencing an economic boom.
• C) the UK is a major exporter of goods, not services.
• D) the demand for UK exports is price inelastic.

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Definitions:

Interest Receivable

Interest Receivable is the amount of interest income that has been earned but not yet received in cash, representing an asset on the balance sheet.

Accrued Interest

Interest that has been incurred but not yet paid, typically recorded in financial statements to recognize expenses in the period they occur.

Gain On Sale

The profit realized from the sale of assets or investments when the selling price exceeds the original purchase price.

Investment-Evans Company

A specific investment made in the Evans Company.