If There Is a Favourable Balance of Payments, It Means

question 170

Multiple Choice

If there is a favourable balance of payments, it means that

• A) a country exports manufactured goods and imports raw materials.
• B) a country imports more than it exports for each country with which it trades.
• C) a country exports more than it imports for each country with which it trades.
• D) the country has more money flowing into it than out as a result of trade and other transactions.
• E) a country exports raw materials and imports manufactured goods.

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Definitions:

Pure Interest Yield

The portion of a loan's interest rate that solely reflects the cost of borrowing money, excluding any other charges or fees.

Purchasing Power

The ability of an entity, such as a person or a firm, to buy goods or services, typically measured by the amount of goods or services that one unit of currency can buy.

Default Probability

The likelihood that a borrower will fail to meet the obligations of debt repayment within the stipulated terms.

Commodities Market

A physical or virtual marketplace for buying, selling, and trading raw or primary products, such as metals, oil, and grains.