In a Country with a Trade Surplus

question 57

Multiple Choice

In a country with a trade surplus,

• A) there will be higher prices.
• B) there will be lower prices.
• C) the economy will be damaged.
• D) there will be increased employment and higher wages.

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Definitions:

Institutional Funds

Investment pools that target large-scale investments, managed by professionals and accessible mainly to institutional investors.

Increased Disclosure

The practice of making more financial and operational information available to the public or regulatory bodies, aiming to improve transparency.

Redemptions

The process of returning an investment’s principal at maturity or withdrawing funds from an account, often seen in mutual funds or fixed-income securities.

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a specific price within a certain time frame.