A Balance of Trade Deficit Exists When

question 62

Multiple Choice

A balance of trade deficit exists when:

• A)the monetary value of imports exceeds that of exports.
• B)economies of scale are not achievable.
• C)supply of imports exceeds the demand for them.
• D)the monetary value added by an exporting nation exceeds that added by an importing nation.
• E)the monetary values of exports and imports are equal.

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Definitions:

Option Contract

A contract granting one party the option to execute a transaction, such as buying or selling an asset at a future date.

Unconscionable

Ridiculously inadequate.

Forbearance

The act of refraining from enforcing a right, obligation, or debt, often temporarily and under specific conditions.

Accord and Satisfaction

A legal agreement where a dispute is settled by the parties involved, and a payment is made that is accepted as full resolution.