Which of the Following Statements Is(are) FALSE

question 6

Multiple Choice

Which of the following statements is(are) FALSE?
I.Trade creation is always bad for countries.
II.Trade diversion is always good for countries.
III.Regional trade agreements never cause welfare losses.

• A)I
• B)II
• C)III
• D)I, II, and III

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Definitions:

Zero-Coupon Bond

A bond that does not pay periodic interest payments, but is instead sold at a discount from its face value and pays its full value at maturity.

Purchase Price

The amount of money paid to buy an asset.

Face Value

The nominal or dollar value printed on a security or currency, indicating its worth as stated by the issuing authority.

Yield To Maturity

The total return anticipated on a bond if it is held until the date it matures, including all payments of interest and principal.