The true statement is <em>D. When </em><em>BCA</em><em> is negative, it implies that government </em><em>budget deficits</em><em> and/or part of </em><em>domestic investment </em><em>are being financed with </em><em>foreign-controlled capital</em><em>.</em>
The above statement is based on the intimate relationship between a country's Balance of the Current Account (BCA) and how the country finances its domestic investments and pays for government expenditure.
Explanation:
National income = Y = GNP
Consumption = C
Private Investment = I
Government spending = G
Exports = X
Imports = M
Taxes = T
Therefore, the BCA = X-M = (S-1) + (T – G)
Where BCA = Balance of Current Account
Thus, the Balance of the Current Account (BCA) should be <u>positive</u> to avoid deficit-financing of government budgets.
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The correct answer is the test marketing. Test marketing is
being defined as the experiment that is being conducted in the laboratory by
which they are likely comprise of the real life buying situations and as well
as the actual stores by which is without the knowledge of the buyers that they
are participating in the evaluation.
Risk that are caused by the response to the another risk is known as secondary risk. The first option is correct.
<h3>What are risk?</h3>
Risk refers to the possibility of the danger or harm. For example there is risk involved to change the career. The risk taken can lead to any outcome it can be positive or negative.
There are various kinds of risk one of those kind is the secondary risk in which the risk is taken as a result of the previous actions taken to deal with the situation.
Thus the correct option is Secondary risk.
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Answer:
8.53 years
Explanation:
Calculation for the duration of the bond
The first step is to calculate for Change in Bond Price
Change in Bond Price = -(30)/1,170
Change in Bond Price = -0.0256×100
Change in Bond Price =-2.56%
Second step is to find the Effective Duration
Effective duration = -0.0256/0.0030
Effective Duration = 8.53 years
Therefore the duration of this bond will be 8.53 years
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