Question 1

2 out of 2 points

                The major difference between the currency futures market and the OTC market is that futures settle gains and losses on a daily basis through the margin mechanism.                                  

                Selected Answer:

•             Question 2

2 out of 2 points

                Most currencies are quoted in relation to the British Sterling.                                     

                Selected Answer:

•             Question 3

2 out of 2 points

                (___________) is considered a sign of economic recovery and stabilization but makes the currency of a country more expensive compared to other currencies, having a direct inverse effect on exports and imports.                                  

                Selected Answer:                                           

•             Question 4

2 out of 2 points

                Global financial markets are important to borrowers for two reasons such as (1) to expand the supply of money, and (2) reduce the cost of money.                                          

                Selected Answer:

•             Question 5

2 out of 2 points

                Actual currencies change hands in FX Markets transactions and can also be completed electronically.                                     

                Selected Answer:

•             Question 6

2 out of 2 points

                In ideal functioning markets, speculation and (_______) assist in the reduction of unavoidable risks associated with uncertainties, such as unemployment, catastrophic losses, and diminished business revenue.                                   

                Selected Answer                                             

•             Question 7

2 out of 2 points

                Purchasing Power Parity has an impact on exchange rates and indicates the current level of inflation of one currency against another.                                           

                Selected Answer:

•             Question 8

2 out of 2 points

                The (___________) monitors the various companies and organizations that are quoted on the security exchange and make sure they meet the requirements for being listed.                                     

                Selected Answer:                                           

•             Question 9

2 out of 2 points

                (__________) essentially decreases a consumer’s purchasing power by making goods and services more expensive.                                         

                Selected Answer:                                           

•             Question 10

2 out of 2 points

                If a currency price is expected to rise in the future, a buyer pays a higher price, which is considered a forward discount.                                            

                Selected Answer:

•             Question 11

2 out of 2 points

                A large percentage of all FX market transactions are spot transactions.                                  

                Selected Answer:

•             Question 12

2 out of 2 points

                The FX swap of currency amounts is normally variable.                                  

                Selected Answer:

•             Question 13

2 out of 2 points

                The most important issue in understanding the effects of exchange rates on business is its (________).                                              

                Selected Answer:                                           

•             Question 14

2 out of 2 points

                Global financial markets are important to lenders for two major reasons: (1) expanding (________) and (2) reducing (________).                                  

                Selected Answer:                                                           

•             Question 15

0 out of 2 points

                In the U.S., the Security Exchange Commission monitors activities of exchange markets and OTC markets.                                          

                Selected Answer:

•             Question 16

2 out of 2 points

                Fixed exchange rates, also known as pegged exchange rates, occur when a government or central bank ties the official exchange rate to another country’s currency or the price of gold.                                              

                Selected Answer:

•             Question 17

0 out of 2 points

                A currency board is a government’s bank and is capable of bailing out a failing bank.                                       

                Selected Answer:

•             Question 18

2 out of 2 points

                OTC participants trade on a physical trading floor.                                            

                Selected Answer:

•             Question 19

0 out of 2 points

                (________) gives every state the right to lead its existence free from external interference.                                     

                Selected Answer:                                                           

•             Question 20

2 out of 2 points

                The (______) is guided by the belief in the importance of building an integrated petroleum industry as a cornerstone for future economic integration amongst Arab countries.                                  

                Selected Answer:                                                           

•             Question 21

0 out of 2 points

                Agreements between participating nations are managed and promoted through (__________).                                            

                Selected Answer:                                                           

•             Question 22

2 out of 2 points

                The Council of Europe judges claims by member states that the European Commission has exceeded its authority.                                               

                Selected Answer:

•             Question 23

2 out of 2 points

                (_________) is the largest agreement in the world (approximately 1.56 billion people).                                               

                Selected Answer:                                                           

•             Question 24

2 out of 2 points

                The Economic Union requires that member countries harmonize their tax, monetary and fiscal policies, create a common currency, and concede a certain amount of sovereignty to the supranational organization to which they belong.                                               

                Selected Answer:

•             Question 25

0 out of 2 points

                The objective of the OECD is increasing economic welfare through  the  world by covering issues associated with social work and economic efforts within participating governments and nonparticipating governments.                                

                Selected Answer:

•             Question 26

2 out of 2 points

                The goals of the (_________) are threefold: (1) the reduction and eventual eradication of poverty in signatory island and land-locked nations, (2) sustainable economic development in signatory island and land-locked nations, and (3) the gradual integration of signatory countries into the world economy.                                 

                Selected Answer:                                                           

•             Question 27

2 out of 2 points

                The intent to form a trading bloc may range from the potential of trade creation to the desire for economic protectionism.                                 

                Selected Answer:

•             Question 28

0 out of 2 points

                Freedom and the absence of random violence is not one of the five basic goals espoused by national governments.                                               

                Selected Answer:

•             Question 29

2 out of 2 points

                Non-tariff barriers refer to laws and regulations affecting trade; these include barriers that governments use to ensure accountability and quality.                                           

                Selected Answer:

•             Question 30

2 out of 2 points

                History has displayed how conflicts can affect the supply and demand of oil resources, resulting in (______) fluctuation.                                        

                Selected Answer:                                                           

•             Question 31

2 out of 2 points

                Non-tariff barriers involve financial methods (e.g., taxes on imports) of protecting national industries from competition by foreign corporations.                                     

                Selected Answer:

•             Question 32

2 out of 2 points

                To become a member state in the ANCOM, a prospective country needs to fulfill political and economic preconditions known as the Copenhagen Criteria.                                           

                Selected Answer:

•             Question 33

2 out of 2 points

                The stages of regional economic integration are as follows: Free Trade Agreement, (__________), Common Market, Economic Union, and (_________).                                     

                Selected Answer:                                           

•             Question 34

2 out of 2 points

                South America is one of the largest trading blocs in the world.                                   

                Selected Answer:

•             Question 35

0 out of 2 points

                Increasing attention is being paid to the rapidly growing economies of (_______) and (_________), as they evolve from primarily agricultural dependence into industrial giants with regional superpower status.                                  

                Selected Answer:                                           

•             Question 36

2 out of 2 points

                The (______) operates as a common market, granting national treatment to all (___) firms and citizens in any other (____) country, as well as removing all barriers to cross country investment and services trade.                                

                Selected Answer:                                           

•             Question 37

0 out of 2 points

                The (__________) examines and decides on claims brought by the European Commission against member states for noncompliance with EU laws or directives.                                   

                Selected Answer:                                           

•             Question 38

2 out of 2 points

                In a (___________), one client company contracts another company to build and deliver a ready to operate industrial plant or infrastructure facility, such as a power plant, a highway or a port. In such cases, the client can be a government agency.                                     

                Selected Answer:                                           

•             Question 39

2 out of 2 points

                One advantage of a management contract is that the host nation provides the funds for any infrastructure associated with the project management.                                          

                Selected Answer:

•             Question 40

0 out of 2 points

                A company can keep itself flexible by following a (____________) which allows the firm to switch partners or exit the market altogether if the need arises.                                             

                Selected Answer:                                           

•             Question 41

2 out of 2 points

                As one of the primary government facilitators for small businesses, the (_____) agency will provide corporate services, which include financing, trade counseling, and commodity brokerage.                                

                Selected Answer:                                           

•             Question 42

2 out of 2 points

                A (__________) is a voluntary arrangement between companies involving exchange sharing, co-development of products, technologies, or services.                                       

                Selected Answer:                                           

•             Question 43

2 out of 2 points

                Small businesses cannot compete in the global economy.                                            

                Selected Answer:

•             Question 44

2 out of 2 points

                (________) entry is optimal for businesses that may not have enough financial capital to initiate operations in a new market.                                     

                Selected Answer:                                           

•             Question 45

0 out of 2 points

                In attractive markets, short-term profitability for a firm is expected to be provided through these investment modes.                                

                Selected Answer:

•             Questio

Question 1

2 out of 2 points

                The major difference between the currency futures market and the OTC market is that futures settle gains and losses on a daily basis through the margin mechanism.                                  

                Selected Answer:

•             Question 2

2 out of 2 points

                Most currencies are quoted in relation to the British Sterling.                                     

                Selected Answer:

•             Question 3

2 out of 2 points

                (___________) is considered a sign of economic recovery and stabilization but makes the currency of a country more expensive compared to other currencies, having a direct inverse effect on exports and imports.                                  

                Selected Answer:                                           

•             Question 4

2 out of 2 points

                Global financial markets are important to borrowers for two reasons such as (1) to expand the supply of money, and (2) reduce the cost of money.                                          

                Selected Answer:

•             Question 5

2 out of 2 points

                Actual currencies change hands in FX Markets transactions and can also be completed electronically.                                     

                Selected Answer:

•             Question 6

2 out of 2 points

                In ideal functioning markets, speculation and (_______) assist in the reduction of unavoidable risks associated with uncertainties, such as unemployment, catastrophic losses, and diminished business revenue.                                   

                Selected Answer                                             

•             Question 7

2 out of 2 points

                Purchasing Power Parity has an impact on exchange rates and indicates the current level of inflation of one currency against another.                                           

                Selected Answer:

•             Question 8

2 out of 2 points

                The (___________) monitors the various companies and organizations that are quoted on the security exchange and make sure they meet the requirements for being listed.                                     

                Selected Answer:                                           

•             Question 9

2 out of 2 points

                (__________) essentially decreases a consumer’s purchasing power by making goods and services more expensive.                                         

                Selected Answer:                                           

•             Question 10

2 out of 2 points

                If a currency price is expected to rise in the future, a buyer pays a higher price, which is considered a forward discount.                                            

                Selected Answer:

•             Question 11

2 out of 2 points

                A large percentage of all FX market transactions are spot transactions.                                  

                Selected Answer:

•             Question 12

2 out of 2 points

                The FX swap of currency amounts is normally variable.                                  

                Selected Answer:

•             Question 13

2 out of 2 points

                The most important issue in understanding the effects of exchange rates on business is its (________).                                              

                Selected Answer:                                           

•             Question 14

2 out of 2 points

                Global financial markets are important to lenders for two major reasons: (1) expanding (________) and (2) reducing (________).                                  

                Selected Answer:                                                           

•             Question 15

0 out of 2 points

                In the U.S., the Security Exchange Commission monitors activities of exchange markets and OTC markets.                                          

                Selected Answer:

•             Question 16

2 out of 2 points

                Fixed exchange rates, also known as pegged exchange rates, occur when a government or central bank ties the official exchange rate to another country’s currency or the price of gold.                                              

                Selected Answer:

•             Question 17

0 out of 2 points

                A currency board is a government’s bank and is capable of bailing out a failing bank.                                       

                Selected Answer:

•             Question 18

2 out of 2 points

                OTC participants trade on a physical trading floor.                                            

                Selected Answer:

•             Question 19

0 out of 2 points

                (________) gives every state the right to lead its existence free from external interference.                                     

                Selected Answer:                                                           

•             Question 20

2 out of 2 points

                The (______) is guided by the belief in the importance of building an integrated petroleum industry as a cornerstone for future economic integration amongst Arab countries.                                  

                Selected Answer:                                                           

•             Question 21

0 out of 2 points

                Agreements between participating nations are managed and promoted through (__________).                                            

                Selected Answer:                                                           

•             Question 22

2 out of 2 points

                The Council of Europe judges claims by member states that the European Commission has exceeded its authority.                                               

                Selected Answer:

•             Question 23

2 out of 2 points

                (_________) is the largest agreement in the world (approximately 1.56 billion people).                                               

                Selected Answer:                                                           

•             Question 24

2 out of 2 points

                The Economic Union requires that member countries harmonize their tax, monetary and fiscal policies, create a common currency, and concede a certain amount of sovereignty to the supranational organization to which they belong.                                               

                Selected Answer:

•             Question 25

0 out of 2 points

                The objective of the OECD is increasing economic welfare through  the  world by covering issues associated with social work and economic efforts within participating governments and nonparticipating governments.                                

                Selected Answer:

•             Question 26

2 out of 2 points

                The goals of the (_________) are threefold: (1) the reduction and eventual eradication of poverty in signatory island and land-locked nations, (2) sustainable economic development in signatory island and land-locked nations, and (3) the gradual integration of signatory countries into the world economy.                                 

                Selected Answer:                                                           

•             Question 27

2 out of 2 points

                The intent to form a trading bloc may range from the potential of trade creation to the desire for economic protectionism.                                 

                Selected Answer:

•             Question 28

0 out of 2 points

                Freedom and the absence of random violence is not one of the five basic goals espoused by national governments.                                               

                Selected Answer:

•             Question 29

2 out of 2 points

                Non-tariff barriers refer to laws and regulations affecting trade; these include barriers that governments use to ensure accountability and quality.                                           

                Selected Answer:

•             Question 30

2 out of 2 points

                History has displayed how conflicts can affect the supply and demand of oil resources, resulting in (______) fluctuation.                                        

                Selected Answer:                                                           

•             Question 31

2 out of 2 points

                Non-tariff barriers involve financial methods (e.g., taxes on imports) of protecting national industries from competition by foreign corporations.                                     

                Selected Answer:

•             Question 32

2 out of 2 points

                To become a member state in the ANCOM, a prospective country needs to fulfill political and economic preconditions known as the Copenhagen Criteria.                                           

                Selected Answer:

•             Question 33

2 out of 2 points

                The stages of regional economic integration are as follows: Free Trade Agreement, (__________), Common Market, Economic Union, and (_________).                                     

                Selected Answer:                                           

•             Question 34

2 out of 2 points

                South America is one of the largest trading blocs in the world.                                   

                Selected Answer:

•             Question 35

0 out of 2 points

                Increasing attention is being paid to the rapidly growing economies of (_______) and (_________), as they evolve from primarily agricultural dependence into industrial giants with regional superpower status.                                  

                Selected Answer:                                           

•             Question 36

2 out of 2 points

                The (______) operates as a common market, granting national treatment to all (___) firms and citizens in any other (____) country, as well as removing all barriers to cross country investment and services trade.                                

                Selected Answer:                                           

•             Question 37

0 out of 2 points

                The (__________) examines and decides on claims brought by the European Commission against member states for noncompliance with EU laws or directives.                                   

                Selected Answer:                                           

•             Question 38

2 out of 2 points

                In a (___________), one client company contracts another company to build and deliver a ready to operate industrial plant or infrastructure facility, such as a power plant, a highway or a port. In such cases, the client can be a government agency.                                     

                Selected Answer:                                           

•             Question 39

2 out of 2 points

                One advantage of a management contract is that the host nation provides the funds for any infrastructure associated with the project management.                                          

                Selected Answer:

•             Question 40

0 out of 2 points

                A company can keep itself flexible by following a (____________) which allows the firm to switch partners or exit the market altogether if the need arises.                                             

                Selected Answer:                                           

•             Question 41

2 out of 2 points

                As one of the primary government facilitators for small businesses, the (_____) agency will provide corporate services, which include financing, trade counseling, and commodity brokerage.                                

                Selected Answer:                                           

•             Question 42

2 out of 2 points

                A (__________) is a voluntary arrangement between companies involving exchange sharing, co-development of products, technologies, or services.                                       

                Selected Answer:                                           

•             Question 43

2 out of 2 points

                Small businesses cannot compete in the global economy.                                            

                Selected Answer:

•             Question 44

2 out of 2 points

                (________) entry is optimal for businesses that may not have enough financial capital to initiate operations in a new market.                                     

                Selected Answer:                                           

•             Question 45

0 out of 2 points

                In attractive markets, short-term profitability for a firm is expected to be provided through these investment modes.                                

                Selected Answer:

•             Questio

Question 1

2 out of 2 points

                The major difference between the currency futures market and the OTC market is that futures settle gains and losses on a daily basis through the margin mechanism.                                  

                Selected Answer:

•             Question 2

2 out of 2 points

                Most currencies are quoted in relation to the British Sterling.                                     

                Selected Answer:

•             Question 3

2 out of 2 points

                (___________) is considered a sign of economic recovery and stabilization but makes the currency of a country more expensive compared to other currencies, having a direct inverse effect on exports and imports.                                  

                Selected Answer:                                           

•             Question 4

2 out of 2 points

                Global financial markets are important to borrowers for two reasons such as (1) to expand the supply of money, and (2) reduce the cost of money.                                          

                Selected Answer:

•             Question 5

2 out of 2 points

                Actual currencies change hands in FX Markets transactions and can also be completed electronically.                                     

                Selected Answer:

•             Question 6

2 out of 2 points

                In ideal functioning markets, speculation and (_______) assist in the reduction of unavoidable risks associated with uncertainties, such as unemployment, catastrophic losses, and diminished business revenue.                                   

                Selected Answer                                             

•             Question 7

2 out of 2 points

                Purchasing Power Parity has an impact on exchange rates and indicates the current level of inflation of one currency against another.                                           

                Selected Answer:

•             Question 8

2 out of 2 points

                The (___________) monitors the various companies and organizations that are quoted on the security exchange and make sure they meet the requirements for being listed.                                     

                Selected Answer:                                           

•             Question 9

2 out of 2 points

                (__________) essentially decreases a consumer’s purchasing power by making goods and services more expensive.                                         

                Selected Answer:                                           

•             Question 10

2 out of 2 points

                If a currency price is expected to rise in the future, a buyer pays a higher price, which is considered a forward discount.                                            

                Selected Answer:

•             Question 11

2 out of 2 points

                A large percentage of all FX market transactions are spot transactions.                                  

                Selected Answer:

•             Question 12

2 out of 2 points

                The FX swap of currency amounts is normally variable.                                  

                Selected Answer:

•             Question 13

2 out of 2 points

                The most important issue in understanding the effects of exchange rates on business is its (________).                                              

                Selected Answer:                                           

•             Question 14

2 out of 2 points

                Global financial markets are important to lenders for two major reasons: (1) expanding (________) and (2) reducing (________).                                  

                Selected Answer:                                                           

•             Question 15

0 out of 2 points

                In the U.S., the Security Exchange Commission monitors activities of exchange markets and OTC markets.                                          

                Selected Answer:

•             Question 16

2 out of 2 points

                Fixed exchange rates, also known as pegged exchange rates, occur when a government or central bank ties the official exchange rate to another country’s currency or the price of gold.                                              

                Selected Answer:

•             Question 17

0 out of 2 points

                A currency board is a government’s bank and is capable of bailing out a failing bank.                                       

                Selected Answer:

•             Question 18

2 out of 2 points

                OTC participants trade on a physical trading floor.                                            

                Selected Answer:

•             Question 19

0 out of 2 points

                (________) gives every state the right to lead its existence free from external interference.                                     

                Selected Answer:                                                           

•             Question 20

2 out of 2 points

                The (______) is guided by the belief in the importance of building an integrated petroleum industry as a cornerstone for future economic integration amongst Arab countries.                                  

                Selected Answer:                                                           

•             Question 21

0 out of 2 points

                Agreements between participating nations are managed and promoted through (__________).                                            

                Selected Answer:                                                           

•             Question 22

2 out of 2 points

                The Council of Europe judges claims by member states that the European Commission has exceeded its authority.                                               

                Selected Answer:

•             Question 23

2 out of 2 points

                (_________) is the largest agreement in the world (approximately 1.56 billion people).                                               

                Selected Answer:                                                           

•             Question 24

2 out of 2 points

                The Economic Union requires that member countries harmonize their tax, monetary and fiscal policies, create a common currency, and concede a certain amount of sovereignty to the supranational organization to which they belong.                                               

                Selected Answer:

•             Question 25

0 out of 2 points

                The objective of the OECD is increasing economic welfare through  the  world by covering issues associated with social work and economic efforts within participating governments and nonparticipating governments.                                

                Selected Answer:

•             Question 26

2 out of 2 points

                The goals of the (_________) are threefold: (1) the reduction and eventual eradication of poverty in signatory island and land-locked nations, (2) sustainable economic development in signatory island and land-locked nations, and (3) the gradual integration of signatory countries into the world economy.                                 

                Selected Answer:                                                           

•             Question 27

2 out of 2 points

                The intent to form a trading bloc may range from the potential of trade creation to the desire for economic protectionism.                                 

                Selected Answer:

•             Question 28

0 out of 2 points

                Freedom and the absence of random violence is not one of the five basic goals espoused by national governments.                                               

                Selected Answer:

•             Question 29

2 out of 2 points

                Non-tariff barriers refer to laws and regulations affecting trade; these include barriers that governments use to ensure accountability and quality.                                           

                Selected Answer:

•             Question 30

2 out of 2 points

                History has displayed how conflicts can affect the supply and demand of oil resources, resulting in (______) fluctuation.                                        

                Selected Answer:                                                           

•             Question 31

2 out of 2 points

                Non-tariff barriers involve financial methods (e.g., taxes on imports) of protecting national industries from competition by foreign corporations.                                     

                Selected Answer:

•             Question 32

2 out of 2 points

                To become a member state in the ANCOM, a prospective country needs to fulfill political and economic preconditions known as the Copenhagen Criteria.                                           

                Selected Answer:

•             Question 33

2 out of 2 points

                The stages of regional economic integration are as follows: Free Trade Agreement, (__________), Common Market, Economic Union, and (_________).                                     

                Selected Answer:                                           

•             Question 34

2 out of 2 points

                South America is one of the largest trading blocs in the world.                                   

                Selected Answer:

•             Question 35

0 out of 2 points

                Increasing attention is being paid to the rapidly growing economies of (_______) and (_________), as they evolve from primarily agricultural dependence into industrial giants with regional superpower status.                                  

                Selected Answer:                                           

•             Question 36

2 out of 2 points

                The (______) operates as a common market, granting national treatment to all (___) firms and citizens in any other (____) country, as well as removing all barriers to cross country investment and services trade.                                

                Selected Answer:                                           

•             Question 37

0 out of 2 points

                The (__________) examines and decides on claims brought by the European Commission against member states for noncompliance with EU laws or directives.                                   

                Selected Answer:                                           

•             Question 38

2 out of 2 points

                In a (___________), one client company contracts another company to build and deliver a ready to operate industrial plant or infrastructure facility, such as a power plant, a highway or a port. In such cases, the client can be a government agency.                                     

                Selected Answer:                                           

•             Question 39

2 out of 2 points

                One advantage of a management contract is that the host nation provides the funds for any infrastructure associated with the project management.                                          

                Selected Answer:

•             Question 40

0 out of 2 points

                A company can keep itself flexible by following a (____________) which allows the firm to switch partners or exit the market altogether if the need arises.                                             

                Selected Answer:                                           

•             Question 41

2 out of 2 points

                As one of the primary government facilitators for small businesses, the (_____) agency will provide corporate services, which include financing, trade counseling, and commodity brokerage.                                

                Selected Answer:                                           

•             Question 42

2 out of 2 points

                A (__________) is a voluntary arrangement between companies involving exchange sharing, co-development of products, technologies, or services.                                       

                Selected Answer:                                           

•             Question 43

2 out of 2 points

                Small businesses cannot compete in the global economy.                                            

                Selected Answer:

•             Question 44

2 out of 2 points

                (________) entry is optimal for businesses that may not have enough financial capital to initiate operations in a new market.                                     

                Selected Answer:                                           

•             Question 45

0 out of 2 points

                In attractive markets, short-term profitability for a firm is expected to be provided through these investment modes.                                

                Selected Answer:

•             Questio