BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a country’s internal trade relation
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a country’s domestic economic activities
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a country’s financial position
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a country’s foreign trade relation
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Detailed explanation-1: -Gross domestic product (GDP) is the standard measure of the value added created through the production of goods and services in a country during a certain period. As such, it also measures the income earned from that production, or the total amount spent on final goods and services (less imports).
Detailed explanation-2: -If domestic consumers spend more on foreign products than domestic producers sell to foreign consumers-a trade deficit-then GDP decreases.
Detailed explanation-3: -Gross Domestic Product or GDP is referred to as the total monetary value of all the final goods and services produced within the geographic boundaries of a country, during a given period (usually a year).
Detailed explanation-4: -The real economy – including all things that support human well-being – is much larger than the market economy estimated by GDP. GDP was never designed as a measure of overall societal well-being and its continued misuse for that purpose needs to stop.
Detailed explanation-5: -GDP includes the production and income of foreigners and foreign-owned property in the home country and excludes the production and incomes of the country’s own citizens or their property located abroad.