The Main Difference Between GDP and GNI Is That GNI

question 3

Multiple Choice

The main difference between GDP and GNI is that GNI excludes:

• A)net international income to the rest of the world
• B)depreciation of fixed capital
• C)transfer payments
• D)government purchases
• E)net exports

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Definitions:

Equal Monthly Contributions

Regular, identical payments made monthly towards a financial obligation or investment.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Investment Contributions

Money that individuals or entities provide toward investment vehicles for the purpose of accumulation and growth.

Compounded Rate

Refers to the process by which interest is earned on both the initial principal and the interest previously earned.