Which of the Following Will Be Recorded as a Debit

question 97

Multiple Choice

Which of the following will be recorded as a debit entry in the balance of trade in merchandise account?

• A) A U.S. car manufacturer selling a car to a resident of India.
• B) A pub owner in Liverpool importing vodka from a U.S. manufacturer.
• C) A U.S. textile manufacturer buying rawmaterial from farmers in Indonesia.
• D) A Chinese car manufacturer importing car engines and other spare parts from a U.S. manufacturer.
• E) A fashion designer from Michigan exporting readymade garments to a dealer in Copenhagen.

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Definitions:

Coupon Rate

The interest rate stated on a bond or other fixed-income security, expressed as a percentage of its face value, that the issuer pays to the bondholder annually.

Interest Rate Risk

The potential loss in value of an investment due to a change in interest rates.

Junk Bonds

Junk bonds are high-yield bonds that carry a higher risk of default compared to investment-grade bonds, offering higher interest rates to compensate for the increased risk.

Interest Rate Risk

The potential for investment losses due to fluctuations in the interest rates, affecting the value of interest-bearing assets like bonds.