A Favorable Balance of Trade Occurs When the Value of

question 211

Multiple Choice

A favorable balance of trade occurs when the value of

• A) imports equals the value of exports.
• B) the cash inflows equals the value of the cash outflows.
• C) imports is less than the value of exports.
• D) the dollar is greater than the value of the euro.

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Definitions:

Expected Rate Of Return

The projected return on an investment, considering both the probability of gains and the potential for losses, over a specific time period.

Interest Rates

The percentage charged on the total amount of borrowed money, or paid as earnings on an investment.

Future Dollars

A term referring to the anticipated value of a currency taking into account inflation or deflation over time.

Expected Rate Of Return

The profit or loss one anticipates on an investment that has various known or expected rates of return.