Advanced Questions - Section 2

26:  

____ is needed to balance the balance of payments statement.

A.

credit transactions

B.

debit transactions

C.

unilateral transfers

D.

statistical discrepancy

 
 

Option: D

Explanation :

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27:  

An important feature of a _____ is that the holder has the right, but not the obliga­tion, to buy or sell currency.

A.

swap

B.

foreign exchange arbitrage

C.

foreign exchange option

D.

futures market contract

 
 

Option: C

Explanation :

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28:  

Assessee is always a person but a person may or may not be an assessee.

A.

True

B.

False

C.

Cannot be said with certainty

D.

Is decided by the Assessing Officer

 
 

Option: A

Explanation :

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29:  

The argument that U.S. current account deficits cause net job losses for Americans

A.

is true by definition in all possible circumstances

B.

is supported by recent U.S. history

C.

focuses only on the overall economy and is thus always true

D.

fails to recognize that a current account deficit is matched by an equal inflow of foreign funds which finances employment increasing investment spending

 
 

Option: D

Explanation :

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30:  

Which exchange rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium?

A.

dual exchange rates

B.

adjustable pegged exchange rates

C.

managed floating exchange rates

D.

crawling pegged exchange rates

 
 

Option: D

Explanation :

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