A Country with No Trade and No Borrowing and Lending

question 93

Multiple Choice

A country with no trade and no borrowing and lending relationships with other countries is known as a(n)

• A)planned economy.
• B)market economy.
• C)open economy.
• D)closed economy.

---

Definitions:

Investment

The allocation of resources, usually money, into assets or projects expected to generate future returns or profit.

Profitability Index

A calculation that measures the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.

Discount Rate

This rate is applied in discounted cash flow analysis to derive the current value of cash flows expected to be received in the future.

Project

A short-term effort made to develop a distinct product, service, or outcome.