Question 1

The balance of payments (BOPs)is a record of a country's transactions with only its major trading partners.

Accepted Answer

A) True 
 B)False

Question 2

The balance of payments account is a record of

Accepted Answer

A)  the total tangible trade flows of a country over a five-year period. 
B)  a country's transactions with the rest of the world. 
C)  a country's total debt service payments during a one-year period. 
D)  the outstanding balance of a country's debt payments for the fiscal year. 
A)  the total tangible trade flows of a country over a five-year period. 
B)  a country's transactions with the rest of the world. 
C)  a country's total debt service payments during a one-year period. 
D)  the outstanding balance of a country's debt payments for the fiscal year.

Question 3

Withholding tax is

Accepted Answer

A)  an indirect tax paid by employers before employees receive salaries. 
B)  a direct tax levied on earned income. 
C)  a 30% tax levied on foreign residents. 
D)  an indirect tax levied on passive income. 
A)  an indirect tax paid by employers before employees receive salaries. 
B)  a direct tax levied on earned income. 
C)  a 30% tax levied on foreign residents. 
D)  an indirect tax levied on passive income.

Question 4

In the gold standard,trade imbalances were corrected by a transfer of _______ in the direction of the surplus.

Accepted Answer

The answer of In the gold standard,trade imbalances were corrected...

Question 5

According to the BIS,the ________ is the most popular vehicle currency.

Accepted Answer

dollar
Explanation:

Question 6

Exchange rate forecasting is an advanced science; with the correct data,we can predict with accuracy exchange rate movements.

Accepted Answer

A) True 
 B)False

Question 7

The inflation rate determines

Accepted Answer

A)  the capital structure of the firm. 
B)  the growth rate of sales. 
C)  the real cost of borrowing in capital markets. 
D)  the equilibrium point. 
A)  the capital structure of the firm. 
B)  the growth rate of sales. 
C)  the real cost of borrowing in capital markets. 
D)  the equilibrium point.

Question 8

The Jamaica Agreement

Accepted Answer

A)  established the rules for the floating rate currency exchange rate system. 
B)  led to the free trade agreement in the Caribbean. 
C)  is modeled on the EU's EMU. 
D)  controls exchanges rates in the South Atlantic region. 
A)  established the rules for the floating rate currency exchange rate system. 
B)  led to the free trade agreement in the Caribbean. 
C)  is modeled on the EU's EMU. 
D)  controls exchanges rates in the South Atlantic region.

Question 9

The international Fisher effect says that interest rate differentials

Accepted Answer

A)  predict exchange rate movement. 
B)  can be used to determine purchasing power parity. 
C)  are an example of the law of one price. 
D)  illustrate Pareto optimality. 
A)  predict exchange rate movement. 
B)  can be used to determine purchasing power parity. 
C)  are an example of the law of one price. 
D)  illustrate Pareto optimality.

Question 10

The ________________ approach to exchange rate forecasting assumes that current prices reflect all available information.

Accepted Answer

efficient market
Exp

Question 11

Sir Isaac Newton put England on the gold standard when he

Accepted Answer

A)  declared, as master of the English mint, that he would sell gold for 1 lb., 1 shilling, 1 pence, under the law of one price. 
B)  set a market price for gold, the British pound and the U.S. dollar. 
C)  established a fixed equivalency between gold and the British currency. 
D)  brought the matter to Queen Anne, who declared Britain would follow the gold standard. 
A)  declared, as master of the English mint, that he would sell gold for 1 lb., 1 shilling, 1 pence, under the law of one price. 
B)  set a market price for gold, the British pound and the U.S. dollar. 
C)  established a fixed equivalency between gold and the British currency. 
D)  brought the matter to Queen Anne, who declared Britain would follow the gold standard.

Question 12

The _______________ Commission has control over swap and futures contracts.

Accepted Answer

Commodity

Question 13

The value-added tax (VAT)can be rebated to exporters,according to World Trade Organization (WTO)rules.

Accepted Answer

A) True 
 B)False

Question 14

The general process of managing the risks incurred in wide currency rate shifts in the floating exchange market is known as _____________.

Accepted Answer

The answer of The general process of managing the risks...

Question 15

The inflation rate determines

Accepted Answer

A)  a currency's strengthening. 
B)  the real price of borrowing in capital markets. 
C)  locations for outsourcing. 
D)  import substitution regimes. 
A)  a currency's strengthening. 
B)  the real price of borrowing in capital markets. 
C)  locations for outsourcing. 
D)  import substitution regimes.

Question 16

The current free floating and managed exchange rate system

Accepted Answer

A)  seems to be meeting its present challenges, including the 2008 liquidity crisis. 
B)  is in dire need for redesign due to debt defaults. 
C)  can continue as is for a while but is holding back international finance. 
D)  will need to be replaced with a fixed rate system soon. 
A)  seems to be meeting its present challenges, including the 2008 liquidity crisis. 
B)  is in dire need for redesign due to debt defaults. 
C)  can continue as is for a while but is holding back international finance. 
D)  will need to be replaced with a fixed rate system soon.

Question 17

The FX markets in the U.S.are

Accepted Answer

A)  largely unregulated. 
B)  regulated quite strictly, thanks to the Sarbanes-Oxley Act (SOX). 
C)  controlled by the state banking commissions. 
D)  limited by their trading hours. 
A)  largely unregulated. 
B)  regulated quite strictly, thanks to the Sarbanes-Oxley Act (SOX). 
C)  controlled by the state banking commissions. 
D)  limited by their trading hours.

Question 18

Dollars held in foreign country's reserves are held in the form of _________,so they earn interest.

Accepted Answer

The answer of Dollars held in foreign country's reserves are...

Question 19

The heart of supporters' arguments for the gold system is ________.

Accepted Answer

The answer of The heart of supporters' arguments for the...

Question 20

Who took the United States off the gold system?

Accepted Answer

A)  President Eisenhower 
B)  President Kennedy 
C)  the Supreme Court 
D)  President Nixon 
A)  President Eisenhower 
B)  President Kennedy 
C)  the Supreme Court 
D)  President Nixon

The balance of payments (BOPs)is a record of a country's transactions with only its major trading partners.

The balance of payments account is a record of

Withholding tax is

In the gold standard,trade imbalances were corrected by a transfer of _______ in the direction of the surplus.

According to the BIS,the ________ is the most popular vehicle currency.

Exchange rate forecasting is an advanced science; with the correct data,we can predict with accuracy exchange rate movements.

The inflation rate determines

The Jamaica Agreement

The international Fisher effect says that interest rate differentials

The ________________ approach to exchange rate forecasting assumes that current prices reflect all available information.

Sir Isaac Newton put England on the gold standard when he

The _______________ Commission has control over swap and futures contracts.

The value-added tax (VAT)can be rebated to exporters,according to World Trade Organization (WTO)rules.

The general process of managing the risks incurred in wide currency rate shifts in the floating exchange market is known as _____________.

The inflation rate determines

The current free floating and managed exchange rate system

The FX markets in the U.S.are

Dollars held in foreign country's reserves are held in the form of _________,so they earn interest.

The heart of supporters' arguments for the gold system is ________.

Who took the United States off the gold system?

The Challenging Context of International Business

International Trade and Investment

Sociocultural Forces

Sustainability and Natural Resources

Political Forces That Affect Global Trade

Intellectual Property Rights and Other Legal Forces

Economic and Socioeconomic Forces

International Competitive Strategy

Organizational Design and Control

Global Leadership Issues and Practices

International Markets: Assessment and Entry Modes

Marketing Internationally

Managing Human Resources in an International Context

International Accounting and Financial Management

Appendix A: International Institutions From a Business Perspective

Appendix B: Export and Import Practices

Appendix C: Global Operations and Supply Chain Management

Filters

Exam 8: The International Monetary System and Financial Forces

The balance of payments (BOPs)is a record of a country's transactions with only its major trading partners.

The balance of payments account is a record of

Withholding tax is

In the gold standard,trade imbalances were corrected by a transfer of _______ in the direction of the surplus.

According to the BIS,the ________ is the most popular vehicle currency.

Exchange rate forecasting is an advanced science; with the correct data,we can predict with accuracy exchange rate movements.

The inflation rate determines

The Jamaica Agreement

The international Fisher effect says that interest rate differentials

The ________________ approach to exchange rate forecasting assumes that current prices reflect all available information.

Sir Isaac Newton put England on the gold standard when he

The _______________ Commission has control over swap and futures contracts.

The value-added tax (VAT)can be rebated to exporters,according to World Trade Organization (WTO)rules.

The general process of managing the risks incurred in wide currency rate shifts in the floating exchange market is known as _____________.

The inflation rate determines

The current free floating and managed exchange rate system

The FX markets in the U.S.are

Dollars held in foreign country's reserves are held in the form of _________,so they earn interest.

The heart of supporters' arguments for the gold system is ________.

Who took the United States off the gold system?

The Challenging Context of International Business

International Trade and Investment

Sociocultural Forces

Sustainability and Natural Resources

Political Forces That Affect Global Trade

Intellectual Property Rights and Other Legal Forces

Economic and Socioeconomic Forces

International Competitive Strategy

Organizational Design and Control

Global Leadership Issues and Practices

International Markets: Assessment and Entry Modes

Marketing Internationally

Managing Human Resources in an International Context

International Accounting and Financial Management

Appendix A: International Institutions From a Business Perspective

Appendix B: Export and Import Practices

Appendix C: Global Operations and Supply Chain Management

Filters