Which of the Following Statements Is TRUE About the Historical

question 49

Multiple Choice

Which of the following statements is TRUE about the historical relationship between the trade deficits and government budget deficits?

• A) There is no relationship between trade deficits and budget deficits.
• B) There is a positive relationship between trade deficits and budget deficits.
• C) There is a negative relationship between trade deficits and budget deficits.
• D) A relationship exists only when there is a balanced budget.

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Definitions:

AASB 128

The Australian Accounting Standards Board standard related to the accounting for investments in associates and to set out the application of the equity method when accounting for investments in associates and joint ventures.

Market Valuation

The process of determining the market value of an asset or company, based on supply, demand, and other economic factors.

Active Market

A financial market in which securities or commodities are frequently traded, showing significant liquidity and pricing information.

Significant Influence

Refers to the power to participate in the financial and operating policy decisions of an investee but is not control or joint control over those policies.