International Business MCQ - International Business Section 2

66 When the nation draws down its reserves for a while and keeps the reserve loss from affecting national money supply, it is called

A
Deficit without tears
B
Temporary financing
C
Exchange control
D
Exchange rate compromise

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Correct AnswerOption B

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67 Marginal propensity to import is

A
The ratio of change in imports to the change in national income
B
The ratio of change in imports to change in exports
C
The ratio of change in imports to change in net income from abroad
D
The ratio of change in imports to change in the country share in world trade

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Correct AnswerOption B

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68 The nominal exchange rate weighed by the consumer price indeed in the two nations is

A
Real exchange rate
B
Relative exchange rate
C
Consumer exchange rate
D
Reciprocal exchange rate

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Correct AnswerOption A

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Follow:

A
Increases in production and consumption that lead to less than proportionate increases in the volume of trade.
B
Increases in production and consumption that lead to greater than proportionate increases in the volume of trade.
C
Increases in production and consumption that lead to proportionate increases in the volume of trade
D
Increases in production and consumption that lead to proportionate decreases in the volume of trade

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Correct AnswerOption B

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International Business MCQ - International Business Section 2

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International Business MCQ - International Business Section 2

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