Why Is Per Capita GNI Useful as a Measure of Wealth

question 49

Short Answer

Why is per capita GNI useful as a measure of wealth only in countries that are based on a cash economy?

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Definitions:

Spot Rate

The current market price of a commodity, currency, or security that is available for immediate settlement.

Direct Quote

A foreign exchange rate quoted as the domestic currency per unit of the foreign currency.

British Pound

The currency of the United Kingdom, symbolized as GBP.

Forward Exchange Rate

The agreed-upon exchange rate for currencies to be swapped on a specified future date.