Over the 1980 and 1990s, Countries That Were Given Large

question 103

Multiple Choice

Over the 1980 and 1990s, countries that were given large amounts of aid:

• A) experienced growth of 1 percent regardless of the policy in place.
• B) saw GDP shrink by 1 percent regardless of the policy in place.
• C) saw GDP shrink by 1 percent even if they had sound policy in place.
• D) experienced mixed impacts on their GDP growth.

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Definitions:

Current Rate Method

An accounting technique used in currency translation where assets and liabilities are converted at the current exchange rate.

Exchange Rates

The value of one currency for the purpose of conversion to another, indicating how much one currency can be exchanged for another currency.

Functional Currency

The primary currency of the primary economic environment in which the entity operates, usually the local currency or the currency of the primary sales market.

Current Rate Method

A method of foreign currency translation where assets and liabilities are converted at the current exchange rate.