International finance Set 2
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This set of International Business Multiple Choice Questions & Answers (MCQs) focuses on International finance Set 2
Q1 | Under a gold standard,
- a nation’s currency can be traded for gold at a fixed rate
- a nation’s central bank or monetary authority has absolute control over its money supply
- new discoveries of gold have no effect on money supply or prices
- a & b
Q2 | The Bretton Woods accord
- of 1879 created the gold standard as the basis of international finance
- of 1914 formulated a new international monetary system after the collapse of the gold standard
- of 1944 formulated a new international monetary system after the collapse of the gold standard
- none of the above
Q3 | The current system of international finance is a
- gold standard
- fixed exchange rate system
- floating exchange rate system
- managed float exchange rate system
Q4 | Ask quote is for
- seller
- buyer
- hedger
- speculator
Q5 | A simultaneous purchase and sale of foreign exchange for two different dates is called
- currency devalues
- currency swap
- currency valuation
- currency exchange
Q6 | The basic objective of export Promotion Council is to promote and develop the Exports of the
- particular products of country
- only attractive projects of the country
- only services industry products of the country.
- overall exports of the country.
Q7 | The main promoter of trade liberalization was
- gatt
- nafta
- cepta
- cisa
Q8 | _______________ is an important reason for economic integration.
- geographic proximity
- democracy
- totalitarianism
- common law practice
Q9 | 75). In which of the following types of regional economic integration are internal tariffs eliminatedwith member countries levying a common external tariff on goods being imported from nonmembers.
- customs union
- free trade area
- common market
- complete economic integration
Q10 | A _______________ focuses on eliminating internal tariffs with member countries levying a commonexternal tariff on goods being imported from nonmembers. Additionally, this type of regional economicintegration allows free mobility of production factors such as labor and capital.
- free trade area
- common market
- customs union
- complete economic integration
Q11 | _______________ occurs when production shifts to more efficient producers for reasons ofcomparative advantage, allowing consumers access to more goods at a lower price than would havebeen possible without integration.
- trade diversion
- divestment
- trade creation
- retrenchment
Q12 | Which of the following was developed with the rationale that the U.S.-Canadian trade was the largestbilateral trade in the world and that the United States is Mexico’s and Canada’s largest trading partner?
- cefta (the central european free trade agreement)
- nafta (the north american free trade agreement)
- asean (association of south east asian nations)
- eu (the european union)
Q13 | _______________ occurs when trade shifts to countries in the group at the expense of trade withcountries not in the group, even though the nonmember country might be more efficient in the absenceof trade barriers.
- trade creation
- divestment
- retrenchment
- trade diversion
Q14 | NAFTA calls for all of the following EXCEPT:
- the harmonization of trade rules
- the liberalization of restrictions on services
- the implementation of a common currency
- the liberalization of restrictions on foreign investment
Q15 | NAFTA is a good example of:
- trade erosion.
- divestment.
- retrenchment.
- trade diversion.
Q16 | Where is the headquarters of the EU?
- belgium
- netherlands
- luxembourg
- greece
Q17 | Apart from India, Pakistan and Bangladesh who are the other member countries of SAARC?
- nepal, bhutan, thailand and singapore
- nepal, bhutan, malaysia and maldives
- nepal, bhutan, maldives, sri lanka and afghanistan
- none of the above
Q18 | Which of the following is not the main purpose for formation of SAARC
- to combat terrorism
- to promote the welfare of the people of south asia
- to form mutual defense against foreign aggression
- none of the above
Q19 | SAPTA is a trade agreement by _________________
- asean nations
- apec nations
- saarc nations
- eu nations
Q20 | What is the full form of ASEAN?
- association of south east asian nations
- administration of south east asian nations
- administration of southern eastern asian nations
- organisation of south east asian nations
Q21 | The European Union is a free trade association that is based on a(n)
- economic and monetary union.
- economic union.
- monetary union.
- a commonly agreed upon list of lowered tariffs.
Q22 | Which one of the following has a single currency managed by a common central bank?
- asean
- european union
- world trade organization
- the organization for economic cooperation and development
Q23 | Which of the following is an advantage of turnkey projects?
- can earn a return on knowledge asset
- will not create a competitor
- tight control of operations
- all the above
Q24 | The country that attracts the largest FDI inflow is
- india
- china
- usa
- brazil
Q25 | Firm that operates internationally is able to
- earn a greater return from their skills and core competencies
- realize location economies where they can be performed most efficiently
- realize greater experience curve economies, which reduces the cost of production
- all the above