The Final Stage of the Integration of Countries Belonging to a Trade

question 10

Multiple Choice

The final stage of the integration of countries belonging to a trade bloc is a _______________.

• A) reciprocal trade agreement
• B) political union
• C) customs union
• D) common market
• E) free trade area

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Definitions:

Interest Rate

The percentage of principal charged by the lender for the use of its money or the return earned on deposited funds.

Effective Interest Rate

The actual return on an investment, taking into account the effect of compounding interest.

Cash Cycle

The process that manages the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Operating Cycle

The average time period between purchasing inventory and receiving cash from sales of the inventory.