Statement I: Our High Rate of Savings Has Contributed to the Huge

question 262

Multiple Choice

Statement I: Our high rate of savings has contributed to the huge trade deficit of the last 20 years.
Statement II: Both increasing savings and investment would help reduce the U.S.trade deficit.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Dealer Markets

Markets where dealers buy and sell securities for their own accounts at their own risk.

OTC Market

The Over-the-Counter (OTC) market refers to decentralized trading of securities, such as stocks and bonds, not conducted on a formal exchange.

TSX

Stands for the Toronto Stock Exchange, which is the largest stock exchange in Canada and the third largest in North America.

NYSE

The New York Stock Exchange, one of the largest equity markets in the world, where public corporations list their shares for trading by investors, providing a platform for buying and selling equity securities.