If the Trade-To-GDP Ratio Is 25% and the Overall Value

question 135

Multiple Choice

If the trade-to-GDP ratio is 25% and the overall value of trade (imports plus exports) is $175 billion, then the GDP is:

• A) $250 billion.
• B) $700 billion.
• C) $1 trillion.
• D) $0.5 trillion.

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Definitions:

Financial Ratios

Quantitative measures derived from financial statement analysis used to assess a business's performance, financial health, and valuation.

Leverage Ratios

Financial ratios that measure the amount of capital coming from debt and assess the ability of a company to meet financial obligations.

Liquidity Ratios

Financial metrics used to assess a company's ability to meet its short-term obligations, indicating how quickly assets can be converted into cash.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated as the company's total liabilities divided by its total assets.