Which of the Following Statements About the World Trade Organization

question 36

Multiple Choice

Which of the following statements about the World Trade Organization (WTO) is FALSE?

• A) The WTO is a development of the General Agreement on Tariffs and Trade (GATT).
• B) The WTO is the main world organization governing rules of international trade.
• C) The WTO has worked to increase tariff rates in an effort to protect infant industries in developing countries.
• D) The WTO makes an effort to ensure that trade flows smoothly and predictably.

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Definitions:

Hedge Ratio

A ratio used to measure the proportion of a position that is hedged or the amount of assets used to hedge a risk exposure.

Dynamic Hedging

Constant updating of hedge positions as market conditions change.

Delta Neutral

The value of the options portfolio is not affected by changes in the value of the underlying asset.

Elasticity

A measure of how much the demand or supply of a product or service changes in response to a price or income change.