Which of the Following Statements Is True of Countertrade

question 23

Multiple Choice

Which of the following statements is true of countertrade?

• A) Countertrade is practiced by countries when there is a lack of hard currency.
• B) Countertrade involves products whose prices on world markets tend to remain steady.
• C) Countertrade usually involves industrial products and computer softwares.
• D) Hedging risk in countertrade is prohibited.

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Definitions:

Specified Formula

A precisely defined mathematical equation or method used to solve a problem or determine an outcome.

Financial Asset

An intangible asset whose value is derived from a contractual claim, such as stocks, bonds, or bank deposits.

Debt Securities

Financial instruments that denote money owed by the issuer to the holder, typically involving regular interest payments and a return of principal at maturity.

Mutual Fund Shares

Representations of ownership in a mutual fund, which pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.