Which of the Following Statements Is True

question 5

Multiple Choice

Which of the following statements is true?

• A) World trade as a fraction of world GDP is much less than it was at the end of the 19th century.
• B) War decreases the pace of globalization.
• C) Large countries such as the U.S., Russia, and Japan have high scores in economic integration when measured against the criteria of Foreign Policy magazine.
• D) Poor countries tend to have high scores in the personal contact area when measured against the criteria of Foreign Policy magazine.
• E) The U.S. increased its international investments after the September 11, 2001 terrorist attacks to revive their economy.

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Definitions:

Exchange Rates

The worth of one currency when converting it to another.

Loan Liability

A financial obligation representing money borrowed by one party from another, requiring repayment with interest.

Foreign Exchange Rate

The rate or price at which one currency can be exchanged for another, influencing international trade and investment.

Interest

The cost of borrowing money or the income earned from lending money, usually expressed as a percentage of the principal.