Which of the following statements about the ﬁnancing of international trade is correct?
A) International trade means the trading of ﬁnancial assets for foreign exchange.
B) Most international transactions are made with gold.
C) Imports are more important than exports to the economy of a nation.
D) Exports provide the foreign currencies needed to pay for imports.

Question

Quizplus · Accepted Answer

Exports provide the foreign currencies needed to pay for imports. This is because when a country exports goods and services, it receives payment in a foreign currency, which can then be used to pay for imports from other countries. Without exports, a country would not have the foreign currencies needed to pay for imports, and it would experience a trade deficit.

Which of the Following Statements About the ﬁNancing of International