When a bank makes a loan to one of its customers, to the bank the loan is classified as
A) an asset.
B) a liability.
C) neither an asset nor a liability.
D) an asset in some cases and a liability in other cases, depending on the type of loan.
A
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According to the infant industry argument for trade protectionism
A) new industries are capable of competing with established rivals. B) trade barriers must be used to protect domestic workers. C) new industries need to be shielded from competition in the early stages of learning by doing. D) tariffs imposed to aid new industries should never be removed.
Developing countries
a. do not benefit from foreign aid b. do not benefit from private investment c. generate less than half of their annual flow of foreign exchange from exports d. must acquire foreign exchange in order to pay for imports e. need to decrease labor productivity