Which of the following accurately describes GDP?

The total amount of goods/services produced in a country eachyear

If imports are greater than exports, which of the following is true?

Trade balance is negative resulting in a deficit

Which of the following accurately describes when interest rate parity occurs?

The forward exchange rate does not equal the spot exchange rate

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ICEV International Finance and Exchange Part 1

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Questions 15

Answers

1
Which of the following regulates the International Monetary Fund?
The International Bankers Association
The United Nations
The International Finance Committee
The United States
2
Which of the following terms describes exchange rates used for immediate delivery of a foreign-exchange contract?
Forward exchange rates
Floating exchange rates
Spot exchange rates
Fixed exchange rates
3
Pegged exchange rates are also known as which of the following?
Floating exchange rates
Fixed exchange rates
Forward exchange rates
Spot exchange rates
4
Currency’s value can only be measured in terms of which of the following?
Another country’s currency
Units
Global currency
Weight
5
Which of the following is NOT one of the United States’ top trade partners as listed in the presentation?
Cuba
Germany
Mexico
China
6
If you own an ABC Inc. and you transfer rights to someone to operate a new ABC Inc., you are participating in A
Joint venture
Licensing
Proprietary production
Franchising
7
Which of the following is NOT a factor affecting the exchange rate?
A country’s trade agreements
A country’s language
The state of war or peace in a country
A country’s economy
8
Which of the following currencies is correctly paired with its country?
Yen: China
Franc: Switzerland
Dollar: United Kingdom
Pound: Australia
9
The World Bank was established in 1922.
False
True
10
Which of the following is NOT a method of entering international markets?
Strategic alliance
Proprietary production
Franchising
Joint venture
11
The rate of increase of prices in a country is known as which of the following?
Economic rate
Interest rate
Inflation rate
Economic rate
12
Which of the following accurately describes GDP?
The total amount of goods/services produced in a country eachyear
The rate at which businesses are participating in international business
The monthly percentage rate charged for borrowed money
The percentage of the work force in a country which does not havejobs
13
Which of the following terms describes when two companies agree to do business together while remaining independent?
Joint venture
Franchising
Licensing
Strategic alliance
14
If imports are greater than exports, which of the following is true?
Trade balance is positive resulting in a deficit
Trade balance is negative resulting in a deficit
Trade balance is positive resulting in a surplus
Trade balance is negative resulting in a surplus
15
Which of the following accurately describes when interest rate parity occurs?
When exchange rates cause interest rates to raise internationally
The forward exchange rate does not equal the spot exchange rate
interest rates in a country cause the exchange rate to changedramatically in a short time
When a country changes between floating and fixed exchange rates

ICEV International Finance and Exchange Part 1 Flashcards | StudBud