Which of the Following Is a Form of Countertrade in Which

question 11

Multiple Choice

Which of the following is a form of countertrade in which industrial compensation is mandated by governments when purchasing defense-related goods and services in order to counterbalance the effect of the purchase on the balance of payment?

• A) Open account
• B) Risk factor
• C) Procurement
• D) Offset

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Definitions:

Saving

The share of earnings not used for immediate spending but saved or invested for future needs.

Consumption Function

An economic formula representing how consumer spending is related to various factors, including income levels.

Personal Saving

Personal saving is the portion of personal income that is not expended on consumption or taxes and is instead saved for future use.

Total Saving

The sum of personal savings, plus business savings (undistributed corporate profits), and government surplus in an economy.