International Business - International Business Practice Questions

16:  
Which of the following are not the kinds of balances associated with BOP?
A.

Merchandise or trade balance

B.

Current account balance

C.

Revenue account balance

D.

Overall or official settlements balance

 
 

Option: C

Explanation :

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17:  
Which balance focuses on the problem of defending the nation's currency and its ability to repay its obligations?
A.

Trade balance

B.

Current account balance

C.

Overall balance

D.

All of the above

 
 

Option: C

Explanation :

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18:  
Monetary policy has a comparative advantage in affecting.............. while fiscal policy has comparative advantage in affecting ..........
A.

External balance, domestic economy

B.

Domestic economy, external balance

C.

External spending, internal spending

D.

Internal spending, external spending

 
 

Option: A

Explanation :

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19:  
When the nation lets the exchange market take care of the exchange rate by letting the value of its currency drop until exchange market equilibrium is restored, it is said to adopt.
A.

Fixed exchange rate

B.

Flexible exchange rate

C.

Floating exchange rate

D.

None of the above

 
 

Option: C

Explanation :

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20:  
The arrangement negotiated by the International Monetary Fund at the beginning of 1997 under which 25 participant countries and institutions agreed to land up to SDR 34 billion (about $47 billion) to supplement the previous agreement is known as
A.

General Arrangement to Borrow (GAB)

B.

General Agreement to Borrow (GAB)

C.

New Arrangement to Borrow (NAB)

D.

New Agreement to Borrow (NAB)

 
 

Option: C

Explanation :

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