International Business - International Business Objective Questions

36:  
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

 
 

Option: B

Explanation :

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37:  

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
 
 

Option: B

Explanation :

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38:  
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

 
 

Option: A

Explanation :

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39:  
The extra return that investors require to purchase or hold on to foreign bonds to compensate them for the additional currency and country risks involved in holding foreign bonds is called
A.

Risk tariff

B.

Risk premium

C.

Foreign bonds effect

D.

Investor's premium

 
 

Option: B

Explanation :

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40:  

Pro trade production and consumption means

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
 
 

Option: B

Explanation :

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