Based on Your Intuition and Experience, Which of the Following

question 6

Multiple Choice

Based on your intuition and experience, which of the following options has the highest value?

• A)$100 government bond earning a 5% annual rate of return
• B)$100 invested in a fund with a 10% annual rate of return
• C)$200 government bond earning a 5% annual rate of return
• D)$200 invested in a fund earning a 10% annual rate of return
• E)$150 invested in a fund earning a 7% annual rate of return

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Definitions:

European Union

A political and economic union of 27 European countries that participate in a unified international framework for political, social, and economic policies.

Merchandise Balance

The gap between what a nation exports and imports in terms of physical products.

Services Balance

The difference in value between a country's exported and imported services.

Highly Specialized Economy

An economy focusing on the development and production of specific goods or services, utilizing advanced technology or unique skills for efficiency.