Question 1

According to the services balance, the "+" sign refers to _____ and the "-" sign refers to _____.

Accepted Answer

A)  when foreigners use services in a country; when foreign services are used 
B)  when foreign services are used; when foreign services are used 
C)  incoming dollars; merchandise imports 
D)  merchandise imports; incoming dollars 
E)  earnings from overseas investment; payments are sent overseas 
A)  when foreigners use services in a country; when foreign services are used 
B)  when foreign services are used; when foreign services are used 
C)  incoming dollars; merchandise imports 
D)  merchandise imports; incoming dollars 
E)  earnings from overseas investment; payments are sent overseas

Question 2

______ is a monetary system with varying degrees of government intervention to maintain a range of acceptable values against other currencies.

Accepted Answer

Dirty floa

Question 3

Which of the following is NOT a subaccount of the current account?

Accepted Answer

A)  Trade balance 
B)  Services balance 
C)  Income balance 
D)  Financial account 
E)  Net transfers 
A)  Trade balance 
B)  Services balance 
C)  Income balance 
D)  Financial account 
E)  Net transfers

Question 4

The financial account of the BOP consists of three subaccounts:
1)U)S.-owned assets abroad, 2)foreign-owned assets in the U.S., and 3)_____.

Accepted Answer

A)  a foreign direct investment 
B)  a financial account 
C)  a risk premium 
D)  a balance of transfers 
E)  net financial derivatives 
A)  a foreign direct investment 
B)  a financial account 
C)  a risk premium 
D)  a balance of transfers 
E)  net financial derivatives

Question 5

According to the trade balance, the "+" sign refers to _____ and the "-" sign refers to _____.

Accepted Answer

A)  when foreigners use services in a country; when foreign services are used 
B)  when foreign services are used; when foreign services are used 
C)  incoming dollars coming in when merchandise is exported; dollars that leave the country to pay for imports 
D)  merchandise imports; incoming dollars 
E)  earnings from overseas investment; payments are sent overseas 
A)  when foreigners use services in a country; when foreign services are used 
B)  when foreign services are used; when foreign services are used 
C)  incoming dollars coming in when merchandise is exported; dollars that leave the country to pay for imports 
D)  merchandise imports; incoming dollars 
E)  earnings from overseas investment; payments are sent overseas

Question 6

The three largest foreign exchange markets are in London, New York, and _____.

Accepted Answer

A)  Singapore 
B)  Sydney 
C)  Paris 
D)  Tokyo 
E)  San Francisco 
A)  Singapore 
B)  Sydney 
C)  Paris 
D)  Tokyo 
E)  San Francisco

Question 7

According to the balance of transfers, the "+" sign refers to _____ and the "-" sign refers to _____.

Accepted Answer

A)  payment of foreign aid loans; a payment going abroad as foreign aid 
B)  when foreign services are used; when foreign services are used 
C)  incoming dollars coming in when merchandise is exported; dollars that leave the country to pay for imports 
D)  merchandise imports; incoming dollars 
E)  earnings from overseas investment; payments are sent overseas 
A)  payment of foreign aid loans; a payment going abroad as foreign aid 
B)  when foreign services are used; when foreign services are used 
C)  incoming dollars coming in when merchandise is exported; dollars that leave the country to pay for imports 
D)  merchandise imports; incoming dollars 
E)  earnings from overseas investment; payments are sent overseas

Question 8

The price at an earlier time of a currency in terms of another currency established for future delivery in the forward market refers to the ______.

Accepted Answer

The answer of The price at an earlier time of...

Question 9

____ is a monetary system with minimal government intervention; largely market determined.

Accepted Answer

Clean floa

Question 10

The _______ line reconciles any imbalance between the current account and financial account to ensure that all debit and credit entries in the balance of payments statement sum to zero.

Accepted Answer

statistica

Question 11

______ refers to an exchange that enables purchases and sales of currencies in the future with prices (or the forward rate)established at a previous time.

Accepted Answer

The answer of ______ refers to an exchange that enables...

Question 12

Emerging market countries' currencies that are less stable in value than hard currencies and are sometimes pegged to hard currency values are called _______.

Accepted Answer

The answer of Emerging market countries' currencies that are less...

Question 13

Which of the following represents the top trading partner of the United States?

Accepted Answer

A)  Mexico 
B)  Canada 
C)  Germany 
D)  Japan 
E)  France 
A)  Mexico 
B)  Canada 
C)  Germany 
D)  Japan 
E)  France

Question 14

Calculation using the cost of a McDonald's restaurant sandwich to assess the relative values of currencies refers to the ______.

Accepted Answer

The answer of Calculation using the cost of a McDonald's...

Question 15

______ refers to the principle implying that expected future spot exchange rates and spot exchange rates set interest rates on bonds in different countries equal to one another.

Accepted Answer

The principle that implies that expected

Question 16

The statistical discrepancy line reconciles any remaining imbalance to ensure that all debit and credit entries in the BOP statement sum to zero. This line captures statistical inconsistencies in the recording of the credit and debit entries as well as illegal trade.

Accepted Answer

A) True 
 B)False

Question 17

Scenario - The Whoppler Firm
The Whoppler Firm is an experienced financial specialist firm that advises thousands of clients regarding foreign investments and transactions. It takes pride in the accuracy of the financial advice that is provided to its clients and strives to increase the wealth of each participant. According to the records of the Whoppler Firm, the financial expertise of the company has saved its clients over five million dollars in the last year alone.
-One of the many factors closely watched by the Whoppler Firm is currency values. This firm understands these values can change frequently and quickly. Which one of the following is least likely to be a cause for a currency value to change?

Accepted Answer

A)  Price level differences for the same goods and services 
B)  Varying interest rates across countries 
C)  Varying economic prospects of differing countries 
D)  Price imbalances caused by mispricing of goods and services in differing countries 
E)  Stable economic and pricing conditions between differing nations 
A)  Price level differences for the same goods and services 
B)  Varying interest rates across countries 
C)  Varying economic prospects of differing countries 
D)  Price imbalances caused by mispricing of goods and services in differing countries 
E)  Stable economic and pricing conditions between differing nations

Question 18

____ is the practice of using the dollar or some other foreign currency together with, or instead of, a domestic currency in a country.

Accepted Answer

The answer of ____ is the practice of using the...

Question 19

Which of the following rose substantially in value against most other currencies as well as served as a reserve asset in many countries during the global economic and financial crises of 2008-2009?

Accepted Answer

A)  U.S. dollar 
B)  Australian dollar 
C)  Indian Rupee 
D)  Peso 
E)  Yen 
A)  U.S. dollar 
B)  Australian dollar 
C)  Indian Rupee 
D)  Peso 
E)  Yen

Question 20

____________ encompasses purchases of fixed assets (such as factories and equipment)abroad used in the manufacture and sales of goods and services.

Accepted Answer

Foreign direct inves

According to the services balance, the "+" sign refers to _ and the "-" sign refers to _.

______ is a monetary system with varying degrees of government intervention to maintain a range of acceptable values against other currencies.

Which of the following is NOT a subaccount of the current account?

The financial account of the BOP consists of three subaccounts: 1)U)S.-owned assets abroad, 2)foreign-owned assets in the U.S., and 3)_____.

According to the trade balance, the "+" sign refers to _ and the "-" sign refers to _.

The three largest foreign exchange markets are in London, New York, and _____.

According to the balance of transfers, the "+" sign refers to _ and the "-" sign refers to _.

The price at an earlier time of a currency in terms of another currency established for future delivery in the forward market refers to the ______.

____ is a monetary system with minimal government intervention; largely market determined.

The _______ line reconciles any imbalance between the current account and financial account to ensure that all debit and credit entries in the balance of payments statement sum to zero.

______ refers to an exchange that enables purchases and sales of currencies in the future with prices (or the forward rate)established at a previous time.

Emerging market countries' currencies that are less stable in value than hard currencies and are sometimes pegged to hard currency values are called _______.

Which of the following represents the top trading partner of the United States?

Calculation using the cost of a McDonald's restaurant sandwich to assess the relative values of currencies refers to the ______.

______ refers to the principle implying that expected future spot exchange rates and spot exchange rates set interest rates on bonds in different countries equal to one another.

The statistical discrepancy line reconciles any remaining imbalance to ensure that all debit and credit entries in the BOP statement sum to zero. This line captures statistical inconsistencies in the recording of the credit and debit entries as well as illegal trade.

____ is the practice of using the dollar or some other foreign currency together with, or instead of, a domestic currency in a country.

Which of the following rose substantially in value against most other currencies as well as served as a reserve asset in many countries during the global economic and financial crises of 2008-2009?

____________ encompasses purchases of fixed assets (such as factories and equipment)abroad used in the manufacture and sales of goods and services.

The Rise of Globalization

The Evolution of International Business

Regional Economic Integration

The Cultural Environment

The Legal and Political Environment of Global Business

Corruption and Ethics in Global Business

Entry Strategies in Global Business

Control of Global Business

The Organization of Global Business

Global Human Resource Management

Global Marketing

Global Operations and Supply-Chain Management

Global Financial Management

Accounting and Taxation in Global Business

Filters

Exam 4: The International Flow of Funds and Exchange Rates

According to the services balance, the "+" sign refers to _____ and the "-" sign refers to _____.

______ is a monetary system with varying degrees of government intervention to maintain a range of acceptable values against other currencies.

Which of the following is NOT a subaccount of the current account?

The financial account of the BOP consists of three subaccounts: 1)U)S.-owned assets abroad, 2)foreign-owned assets in the U.S., and 3)_____.

According to the trade balance, the "+" sign refers to _____ and the "-" sign refers to _____.

The three largest foreign exchange markets are in London, New York, and _____.

According to the balance of transfers, the "+" sign refers to _____ and the "-" sign refers to _____.

The price at an earlier time of a currency in terms of another currency established for future delivery in the forward market refers to the ______.

____ is a monetary system with minimal government intervention; largely market determined.

The _______ line reconciles any imbalance between the current account and financial account to ensure that all debit and credit entries in the balance of payments statement sum to zero.

______ refers to an exchange that enables purchases and sales of currencies in the future with prices (or the forward rate)established at a previous time.

Emerging market countries' currencies that are less stable in value than hard currencies and are sometimes pegged to hard currency values are called _______.

Which of the following represents the top trading partner of the United States?

Calculation using the cost of a McDonald's restaurant sandwich to assess the relative values of currencies refers to the ______.

______ refers to the principle implying that expected future spot exchange rates and spot exchange rates set interest rates on bonds in different countries equal to one another.

The statistical discrepancy line reconciles any remaining imbalance to ensure that all debit and credit entries in the BOP statement sum to zero. This line captures statistical inconsistencies in the recording of the credit and debit entries as well as illegal trade.

____ is the practice of using the dollar or some other foreign currency together with, or instead of, a domestic currency in a country.

Which of the following rose substantially in value against most other currencies as well as served as a reserve asset in many countries during the global economic and financial crises of 2008-2009?

____________ encompasses purchases of fixed assets (such as factories and equipment)abroad used in the manufacture and sales of goods and services.

The Rise of Globalization

The Evolution of International Business

Regional Economic Integration

The Cultural Environment

The Legal and Political Environment of Global Business

Corruption and Ethics in Global Business

Entry Strategies in Global Business

Control of Global Business

The Organization of Global Business

Global Human Resource Management

Global Marketing

Global Operations and Supply-Chain Management

Global Financial Management

Accounting and Taxation in Global Business

Filters

According to the services balance, the "+" sign refers to _ and the "-" sign refers to _.

According to the trade balance, the "+" sign refers to _ and the "-" sign refers to _.

According to the balance of transfers, the "+" sign refers to _ and the "-" sign refers to _.