Trade And Finance MCQs

Option A: electronics equipment

Option B: computer hardware

Option C: textiles

Option D: trademarks

Correct Answer: electronics equipment ✔

Option A: the United States

Option B: the Czech Republic

Option C: Colombia

Option D: India

Correct Answer: the United States ✔

Option A: computer hardware

Option B: insurance

Option C: weapons

Option D: textiles

Correct Answer: insurance ✔

Option A: World Trade Organization

Option B: North American Free Trade Agreement

Option C: Multilateral Trade Agreement

Option D: General Agreement on Trade and Development

Correct Answer: World Trade Organization ✔

Option A: Neorealism

Option B: Liberalism

Option C: Keynesian economics

Option D: Mercantilism

Correct Answer: Mercantilism ✔

Option A: business leaders set production quotas and report them to government, which holds them accountable

Option B: government officials set prices

Option C: supply and demand are key indicators of prices and production levels

Option D: all of these are the case: government officials set prices; business leaders set production quotes and report them to government; and supply and demand are key indicators of prices and production levels

Correct Answer: government officials set prices ✔

Option A: taxation

Option B: sanctions

Option C: corruption

Option D: all of these: corruption, taxation, and sanctions

Correct Answer: taxation ✔

Option A: plutocracy

Option B: autarky

Option C: monopoly

Option D: oligopoly

Correct Answer: oligopoly ✔

Option A: International Trade Commission

Option B: Commerce Department

Option C: Fair Trade Council

Option D: House Commerce Committee

Correct Answer: International Trade Commission ✔

Option A: start-up firm

Option B: service industry

Option C: venture capital firm

Option D: infant industry

Correct Answer: infant industry ✔

Option A: gold or silver bullion

Option B: petrodollars

Option C: money with a fixed exchange rate

Option D: money that can be readily converted to leading world currencies

Correct Answer: money that can be readily converted to leading world currencies ✔

Option A: consumer economics

Option B: Freedman economics

Option C: Keynesian economics

Option D: comparative advantage

Correct Answer: comparative advantage ✔

Option A: German mark

Option B: British pound

Option C: Russian ruble

Option D: the EU’s euro

Correct Answer: D. the EU’s euro ✔

Option A: gold prices

Option B: the euro

Option C: silver prices

Option D: each other

Correct Answer: gold prices ✔

Option A: buying stocks and bonds

Option B: lowering tariff barriers

Option C: paying subsidies

Option D: building a factory

Correct Answer: buying stocks and bonds ✔

Option A: source state

Option B: host state

Option C: incorporated country

Option D: home country

Correct Answer: home country ✔

Option A: workers in industrialized countries

Option B: human rights NGOs

Option C: environmental groups

Option D: None of the answers is correct

Correct Answer: workers in industrialized countries ✔

Option A: government transactions

Option B: the capital account

Option C: capital flows

Option D: the current account

Correct Answer: capital flows ✔

Option A: Latin America

Option B: G-8 states

Option C: Japan

Option D: Africa

Correct Answer: G-8 states ✔

Option A: regulatory commission

Option B: central bank

Option C: fiscal policy

Option D: currency policy

Correct Answer: central bank ✔

Option A: Bank of America

Option B: Ameri bank

Option C: First National Bank of America

Option D: Federal Reserve

Correct Answer: Federal Reserve ✔

Option A: There is no financial inventive to abide by the sanctions

Option B: Broad multilateral support for international sanctions usually inspires the target of the sanctions to act against them

Option C: If one state tries to use economic means of leverage to influence another, other states are damaged economically

Option D: Refusing to participate in mutually profitable economic trade often harms oneself more than the target of one’s actions, unless all other states follows suit

Correct Answer: D. Refusing to participate in mutually profitable economic trade often harms oneself more than the target of one’s actions, unless all other states follows suit ✔

Option A: International Monetary Fund

Option B: All these answers are correct

Option C: World Bank

Option D: World Exchange Organization

Correct Answer: International Monetary Fund ✔

Option A: Portfolio investment

Option B: Fiduciary investment

Option C: Foreign direct investment

Option D: Currency investment

Correct Answer: Foreign direct investment ✔

Option A: interdependence

Option B: state-sponsored sanctions

Option C: self-reliance

Option D: import reliant

Correct Answer: self-reliance ✔

Option A: revaluation

Option B: reduction

Option C: restructuring

Option D: devaluation

Correct Answer: devaluation ✔

Option A: hard currency reserves

Option B: homes

Option C: factories

Option D: None of these answers is correct

Correct Answer: hard currency reserves ✔

Option A: a tariff

Option B: a surcharge

Option C: a subsidy

Option D: a severance tax

Correct Answer: a tariff ✔

Option A: China

Option B: the United States

Option C: Singapore

Option D: France

Correct Answer: China ✔

Option A: global trade agreements

Option B: reciprocity

Option C: regional trade agreements

Option D: interdependence

Correct Answer: regional trade agreements ✔

Option A: increases the total portfolio value of foreigners who hold that currency

Option B: causes a drop in demand for that currency

Option C: increases confidence in a state’s ability to meet its debts

Option D: is rarely a quick fix for financial problems in the short term

Correct Answer: causes a drop in demand for that currency ✔

Option A: the WTO will likely be replaced by the International Monetary Fund

Option B: the more necessary the WTO will be

Option C: a world-wide common market will soon be achieved

Option D: the WTO may be weakened

Correct Answer: the WTO may be weakened ✔

Option A: stimulus spending to increase inflation

Option B: deficit reduction to increase economic growth

Option C: deficit spending to stimulate the economy

Option D: fiscal restraint to bring down inflation

Correct Answer: deficit spending to stimulate the economy ✔

Option A: It is linked in value to a basket of several key international currencies

Option B: It can be owned by states or companies, but not by individuals

Option C: It is the closest thing to a world currency that exists

Option D: It is created in limited amounts by the IMF

Correct Answer: It can be owned by states or companies, but not by individuals ✔

Option A: They can’t use state funds to buy or sell currencies

Option B: All of their movements are tightly regulated by the IMF

Option C: Developing countries oppose the manipulation of markets by developed countries

Option D: The control only a small fraction of the money moving on such markets

Correct Answer: The control only a small fraction of the money moving on such markets ✔

Option A: “exported” currency to other countries

Option B: greatly increased tariffs on imports from Asia

Option C: increased export of goods and services by offering subsidies to those industries

Option D: invested heavily in the euro and the yen

Correct Answer: A. “exported” currency to other countries ✔

Option A: Movement across borders of countries of goods, people, money, investments etc.

Option B: Globalization

Option C: International trade

Option D: None of the above

Correct Answer: Movement across borders of countries of goods, people, money, investments etc. ✔

Option A: Transactions that occur through the web

Option B: Transactions that occur across open borders

Option C: Transaction that occur globally across widely dispersed locations

Option D: All of the above

Correct Answer: All of the above ✔

Option A: A stock or share

Option B: A bond denominated in a currency that is alien to a substantial proportion of the underwrites through whom it is distributed and sold

Option C: A share issued simultaneously in different stock markets

Option D: A financial contract that derives its value from an underlying asset

Correct Answer: A share issued simultaneously in different stock markets ✔

Option A: Through capital controls

Option B: Through import tariffs

Option C: Through immigration controls

Option D: All of the above

Correct Answer: All of the above ✔

Option A: Transactions where anything goes

Option B: Transactions where global trade and finance replace global trade and finance

Option C: Transactions where international trade and finance replace global trade and finance

Option D: Protectionist transactions

Correct Answer: Transactions where global trade and finance replace global trade and finance ✔

Option A: G8

Option B: IOSCO

Option C: WHO

Option D: a and b

Correct Answer: a and b ✔

Option A: Companies export material throughout the global

Option B: Companies find materials, components and services from anywhere in the world

Option C: Companies pool resources to find new sources

Option D: None of the above

Correct Answer: Companies find materials, components and services from anywhere in the world ✔

Option A: A bond denominated in a currency alien to underwrites

Option B: A loan provided in special Euromarkets.

Option C: The supraterritorial denomination issued throughout the IMF (used as its unit of account)

Option D: Site for financial business offering tax reductions and subsidies

Correct Answer: The supraterritorial denomination issued throughout the IMF (used as its unit of account) ✔

Option A: By devaluing their currency

Option B: By relaxing labour and environmental standards

Option C: By reducing restrictions on repatriation of profits

Option D: a and c

Correct Answer: a and c ✔

Option A: i, ii, iii

Option B: ii, iii, i

Option C: iii, i, ii

Option D: iii, ii, i

Correct Answer: iii, i, ii ✔