ECON 4.1

USMCA is best described as a

• FREE TRADE AREA

• CUSTOMS UNION

• MONETARY UNION

• COMMON MARKET

The EUROZONE is best described as a

• CUSTOMS UNION

• MONETARY UNION

• COMMON MARKET

• FREE TRADE AREA

Portfolio investment would feature in the...

• current account

• trade balance

• capital account

• financial account

Comparative advantage is where a country specialises in the production of a good where

• it has a lower opportunity cost

• it is more efficient

• it is more productive

• it has a higher opportunity cost

Which of the following is NOT a component of the current account

• goods balance

• services balance

• derivatives

• primary income balance

£1 will get you how many bolivianos?

• 7.78

• 77.78

• 778.78

• 8.78

An increase in the value of a currency through govt intervention is known as...

• depreciation

• devaluation

• revaluation

• appreciation

Which of the following would not cause an increase in demand for the £

• fall in interest rates

• rise in interest rates

• fall in inflation

• increase in speculation

The J curve says that a depreciation will do what in the SHORT RUN

• Improve the trade balance

• Worsen the trade balance

• have no impact

• worsen the trade balance if PED for X + M is elastic

Central bank purchase of foreign currency in the FOREX will have what impact?

• Revalue their currency

• Devalue their currency

• Appreciate their currency

• Depreciate their currency