Which of the following are signs of an open economy?begin{enumerate}item Share of trade in GDP is high.item GDP and GNP are almost the same.item Exchange rate is determined by markets.end{enumerate} Select the correct answer using the codes given below

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which of the following are signs of an open economy?

A	1 and 3
B	Only 2
C	1 and 2
D	2 and 3

Explanation:

Detailed explanation-1: -Which of the following is not a method to calculate the Gross Domestic Product (GDP)? Explanation: There are 3 methods used for calculating national income namely; Income method, expenditure method, and Product method. The diminishing cost method is not a method to calculate national income. 6.

Detailed explanation-2: -The four components of gross domestic product are personal consumption, business investment, government spending, and net exports.

Detailed explanation-3: -Measuring GDP. GDP measures the monetary value of final goods and services-that is, those that are bought by the final user-produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.

Detailed explanation-4: -The GDP includes only the finished goods and services and does not include the intermediate goods produced.

There is 1 question to complete.