Which of the Following Transactions Would NOT Be Included in GDP

question 8

Multiple Choice

Which of the following transactions would NOT be included in GDP?

• A) the purchase of 100 shares of newly issued Microsoft stock
• B) the purchase of a newly issued government bond
• C) the purchase of previously issued corporate bond
• D) all of the above

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Definitions:

Return on Equity

A measure of a corporation's profitability relative to stockholders’ equity, indicating how effectively management is using a company's assets to create profits.

Cash Coverage Ratio

This is a measure of a company's ability to cover its debt obligations with its available cash and cash equivalents.

Interest Expenses

The cost incurred by an entity for borrowed funds over a period, usually expressed in monetary terms.

Corporate Tax Rate

The percentage of a corporation's profits that is paid to the government as tax, varying by country and sometimes by the size or type of business.