If a Country Has a Trade Deficit of $30 Billion

question 180

Multiple Choice

If a country has a trade deficit of $30 billion, which of the following can be true?

• A) The country's exports are $150 billion, and its imports are $120 billion.
• B) The country's exports are $110 billion, and its imports are $140 billion.
• C) The country's exports are $120 billion, and its imports are $140 billion.
• D) The country's exports are $140 billion, and its imports are $40 billion.

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Definitions:

Debt Investments-HTM

Investments in debt securities that are held to maturity, meaning the investor plans to hold the securities until they are paid off at their maturity date.

Stock Investments

Securities representing equity or ownership interest in a corporation, allowing investors to gain dividends and potentially capital gains.

Fair Value

An estimate of the market value of an asset or liability, based on the price that two willing parties would agree to in an arm's length transaction.

Unrealized Gain

The increase in value of an asset that has not been sold yet, thus not realized as actual profit.