Which of These Is Most Likely a Poor,developing Country

question 48

Multiple Choice

Which of these is most likely a poor,developing country?

• A)A country that exports machinery for producing shoes.
• B)A country that exports aircraft.
• C)A country that exports copper.
• D)A country that exports computer chips.
• E)A country that exports automobiles and trucks.

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Definitions:

Hedge

An investment made to reduce the risk of adverse price movements in an asset, usually by taking an offsetting position in a related security.

Treasury Bonds

Long-term, fixed-interest U.S. government debt securities with a maturity of more than ten years.

Interest Rate Futures

Financial derivatives contracts that obligate the buyer to purchase an asset (like Treasury bills or bonds) at a future date at a predetermined interest rate.

Spot Market

A financial market in which commodities or financial instruments are traded for immediate delivery.