Liberty university busi 604 international business test 2
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.
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• Question 2
2 out of 2 points
Most currencies are quoted in relation to the British Sterling.
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• 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.
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• 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.
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• Question 5
2 out of 2 points
Actual currencies change hands in FX Markets transactions and can also be completed electronically.
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• 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.
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• 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.
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• 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.
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• Question 9
2 out of 2 points
(__________) essentially decreases a consumer’s purchasing power by making goods and services more expensive.
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• 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.
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• Question 11
2 out of 2 points
A large percentage of all FX market transactions are spot transactions.
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• Question 12
2 out of 2 points
The FX swap of currency amounts is normally variable.
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• Question 13
2 out of 2 points
The most important issue in understanding the effects of exchange rates on business is its (________).
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• Question 14
2 out of 2 points
Global financial markets are important to lenders for two major reasons: (1) expanding (________) and (2) reducing (________).
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• Question 15
0 out of 2 points
In the U.S., the Security Exchange Commission monitors activities of exchange markets and OTC markets.
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• 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.
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• Question 17
0 out of 2 points
A currency board is a government’s bank and is capable of bailing out a failing bank.
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• Question 18
2 out of 2 points
OTC participants trade on a physical trading floor.
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• Question 19
0 out of 2 points
(________) gives every state the right to lead its existence free from external interference.
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• 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.
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• Question 21
0 out of 2 points
Agreements between participating nations are managed and promoted through (__________).
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• Question 22
2 out of 2 points
The Council of Europe judges claims by member states that the European Commission has exceeded its authority.
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• Question 23
2 out of 2 points
(_________) is the largest agreement in the world (approximately 1.56 billion people).
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• 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.
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• 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.
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• 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.
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• 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.
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• 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.
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• 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.
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• Question 30
2 out of 2 points
History has displayed how conflicts can affect the supply and demand of oil resources, resulting in (______) fluctuation.
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• 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.
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• 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.
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• Question 33
2 out of 2 points
The stages of regional economic integration are as follows: Free Trade Agreement, (__________), Common Market, Economic Union, and (_________).
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• Question 34
2 out of 2 points
South America is one of the largest trading blocs in the world.
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• 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.
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• 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.
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• 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.
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• 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.
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• 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.
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• 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.
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• 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.
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• Question 42
2 out of 2 points
A (__________) is a voluntary arrangement between companies involving exchange sharing, co-development of products, technologies, or services.
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• Question 43
2 out of 2 points
Small businesses cannot compete in the global economy.
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• 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.
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• 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.
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• Questio
