The Differences in the Ratios of Exports to GDP Across

question 76

Multiple Choice

The differences in the ratios of exports to GDP across countries are believed to be caused primarily by

• A)trade barriers.
• B)each country's size.
• C)monetary policy.
• D)fiscal policy.
• E) inflation in the domestic country.

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Definitions:

Market Interest Rate

The prevailing rate of interest determined by supply and demand in the money market.

Par

Typically refers to a face value of a bond or stock that is set at issuance, or the stated value of a currency.

Principal Amount

The original sum of money borrowed in a loan, or invested, on which interest is calculated.

Maturity

Maturity is the date on which the principal amount of a bond, loan, or other financial instrument is to be repaid in full to the investor or lender.