Which of the Following Statements Is True

question 70

Multiple Choice

Which of the following statements is true?

• A) The United States has a trade deficit with the rest of the world.
• B) The United States exports more goods than it imports to China.
• C) The United States has had a healthy trade surplus for several years.
• D) The United States typically has a trillion-dollar trade surplus each year.
• E) none of the above

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Definitions:

Maturity Risk

Maturity risk pertains to the uncertainty and potential loss associated with holding a bond or other fixed-income investment until its maturity date.

Coupon

The percentage rate of interest a bond yields annually, based on its principal amount.

Current Yield

The annual return of an investment expressed as a percentage of its current price.

Rate of Return

The gain or loss on an investment over a specified period, proportionally expressed as a percentage of the investment's initial cost.