The Distinction Between International Trade and International Money Is Not

question 27

Multiple Choice

The distinction between international trade and international money is not entirely clear because

• A) real developments in the trade accounts do not have monetary implications.
• B) the balance of payments includes only real measures.
• C) developments caused by purely monetary changes have no real effects.
• D) trade models focus on real, or barter relationships.
• E) most international trade involves monetary transactions.

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Definitions:

Pegword Method

A mnemonic device that involves linking words with numbers to remember a list of items in order by associating them with pre-memorized peg words.

Dual-Coding Hypothesis

A cognitive theory that suggests information is stored in either or both verbal and visual systems, enhancing memory and learning.

Recall

The act of retrieving information or memories from one's past experiences.

Visually

Relating to the sense of sight or visual imagery.