The Number of Units of Developing Country Currency Required to Purchase

question 31

Multiple Choice

The number of units of developing country currency required to purchase a basket of goods and services in a developing country that costs one dollar in the U.S.is given by

• A)GNI price deflator.
• B)Human Development Index ranking.
• C)purchasing power parity.
• D)the exchange rate.

Understand and implement grammar standards in business writing.

Correctly use punctuation in business writing.

Apply basic principles of capitalization in sentences.

Distinguish between correct and incorrect capitalization in specific contexts.

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Definitions:

Compensating Balances

Compensating balances are minimum account balances that a company agrees to maintain in a bank account as part of a borrowing arrangement to offset bank service charges or qualify for better loan terms.

Cash Discount

A reduction in the invoice price offered by sellers to buyers for prompt payment of their bill, aimed at encouraging early payment.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for financing inventory and accounts receivable.

Coupon Payments

Periodic interest payments made by a bond issuer to its bondholders, usually on an annual or semi-annual basis.