Which of the Following Is True About the GNI of the United

question 22

Multiple Choice

Which of the following is true about the GNI of the United States?

• A) It excludes profit earned by an American factory in Great Britain.
• B) It includes profits earned by a Japanese factory in Kentucky.
• C) It includes profit earned by an American factory in Great Britain.
• D) It stands for General National Income.
• E) It is the difference between the value of U.S. exports and imports.

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Definitions:

True Interest Rate

The actual cost of borrowing money, expressed as a percentage, accounting for all charges including interest, transaction fees, and any other related costs.

Performance Warranties

Guarantees provided by a seller or contractor to a buyer that a product or service will meet specified performance criteria.

Enforce

To compel observance of or obedience to a law, rule, or obligation.

Cooling-Off Period

A time interval during which a buyer can decide to cancel a contract without incurring any penalty.