Exam 2: International Flow of Funds

Also known as the "central banks' central bank," the __________ attempts to facilitate cooperation among countries with regard to international transactions and provides assistance to countries experiencing a financial crisis.

Exporting of products by one country to other countries at prices below cost is called elasticity.

Like the International Monetary Fund (IMF),the _______________ is composed of a collection of nations as members.However,unlike the IMF,it uses the private rather than the government sector to achieve its objectives.

As a result of the European Union,restrictions on exports between _______ were reduced or eliminated.

Which of the following is the biggest target of direct foreign investment by U.S.firms

The International Development Association was established to:

The World Bank extends loans only to developed nations,while the International Development Association (IDA)extends loans only to developing nations.

Which is not a concern about the North American Free Trade Agreement (NAFTA)

Portfolio investment represents transactions involving long-term financial assets (such as stocks and bonds)between countries that do not affect the transfer of control.

The U.S.typically has a balance-of-trade surplus in its trade with __________.

Intracompany trade makes up approximately _____ percent of all international trade.

The World Bank's Multilateral Investment Guarantee Agency (MIGA):

The North American Free Trade Agreement (NAFTA)increased restrictions on:

Changes in country ownership of long-term and short-term assets are measured in the balance of payments with the capital account.

Which of the following would likely have the least direct influence on a country's current account

Portfolio investments represent transactions involving long-term financial assets (such as stocks and bonds)between countries that do not affect the transfer of control.

The World Bank was established to:

The "J curve" effect describes:

"Dumping" is used in the text to represent the:

The demand for U.S.exports tends to increase when: