Question Which of the following would contribute to a positive trade balance for a country? Answer a. Having tourists visit the country b. Importing textiles c. Having foreign residents buy the government bonds of the country d. Importing financial services

Question Which of the following would contribute to a positive trade balance for a country? Answer a. Having tourists visit the country b. Importing textiles c. Having foreign residents buy the government bonds of the country d. Importing financial services

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter13: Direct Foreign Investment

Section: Chapter Questions

Problem 7QA

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Concept explainers

Regulation of Commercial Banks

The main function of any commercial bank is accepting deposits and lending money to borrowers. Apart from these two activities, commercial banks provide a host of other services to their customers, like discounting bills of exchange, acting as a custodian of a customer's will, and so on. In the absence of a proper regulatory framework or proper regulations in place, the commercial banks would have ended up charging exorbitant or varied rates of interest or service charges on the funds loaned by them or the services performed by them.

Question

Which of the following would contribute to a positive trade balance for a country?

Answer

a. Having tourists visit the country

b. Importing textiles

c. Having foreign residents buy the government bonds of the country

d. Importing financial services

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