A nation wishing to reduce its current account deficit would be advised to
| A. | engage in more government spending |
| B. | reduce government taxes |
| C. | increase private investment spending |
| D. | decrease domestic consumption spending |
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Option: D Explanation : Click on Discuss to view users comments. |
Which financial instrument provides a buyer the right to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a couple of years
| A. | letter of credit |
| B. | foreign currency option |
| C. | cable transfer |
| D. | bill of exchange |
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Option: B Explanation : Click on Discuss to view users comments. |
A ____ is a regional trading bloc in which member countries eliminate internal trade barriers but maintain existing barriers against countries that are not members
| A. | free trade area |
| B. | customs union |
| C. | common market |
| D. | monetary union |
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Option: A Explanation : Click on Discuss to view users comments. |
The largest volume of foreign exchange trading takes place in
| A. | China |
| B. | Germany |
| C. | the United Kingdom |
| D. | the United States |
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Option: C Explanation : Click on Discuss to view users comments. |
Multinational corporations face problems since they
| A. | cannot benefit from the advantage of comparative advantage |
| B. | may raise political problems in countries where their subsidiaries operate |
| C. | can only invest at home, but not overseas |
| D. | can only invest overseas, but not at home |
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Option: B Explanation : Click on Discuss to view users comments. |
