Which of the Following Statements About the fiNancing of International

question 123

Multiple Choice

Which of the following statements about the financing of international trade is correct?

• A) International trade means the trading of financial assets for foreign exchange.
• B) Most international transactions are made with gold.
• C) Imports are more important than exports to the economy of a nation.
• D) Exports provide the foreign currencies needed to pay for imports.

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Definitions:

Indorses

A variant spelling of "endorses," meaning to sign the back of a check or document, transferring rights or expressing approval.

Unauthorized Indorsement

A signature placed on a negotiable instrument (like a check) without proper authority or consent, often leading to questions of validity and fraud.

Burden Of Loss

Refers to the responsibility to bear the financial impact of damage, loss, or destruction of property in legal or insurance contexts.

First Party

The entity or individual directly involved in a transaction or legal agreement, such as the buyer in a purchase agreement.