Quiz on International Flow of Funds

It is a broad measure of a country’s international trade balance.

• current account

• capital account

• financial account

• portfolio account

It is a measure of the value of financial and non-financial assets transferred across a country's borders.

• current account

• capital account

• financial account

• portfolio account

It consists mainly of payments for direct foreign investment and investment in securities (portfolio investment).

• current account

• capital account

• financial account

• portfolio account

International trade activity has grown over time in response to several government agreements to remove cross-border restrictions.

• True

• False

• Maybe

• Sometimes

It tends to occur in those countries that have no restrictions on such investments and a potential for economic growth.

• Direct foreign investment

• Indirect foreign investment

• Foreign investment

• Domestic investment

It tends to occur in those countries where taxes are not excessive, where interest rates are high, and where the local currencies are not expected to weaken.

• Portfolio investment

• Indirect Portfolio Investment

• Direct Portfolio investment

• Domestic Portfolio investment

It attempts to facilitate cooperation among countries with regard to international transactions. It serves the central banks of countries in their pursuit of financial stability.

• Bank for International Settlements

• Bank for Inter-Domestic Settlements

• Bank for Inter-Foreign Settlements

• Bank for Inter-Country Settlements

It serves as a catalyst, rather than a primary supporter, for private enterprise development projects. And it works to increase economic development through the private sector rather than the government sector.

• International Finance Corporation

• international foreign corporations

• International Financial Corporation

• International Finance Portfolio Corporation

This organization was established to provide a forum for multilateral trade negotiations and to settle trade disputes related to the General Agreement on Tariffs and Trade (GATT).

• World Trade Organization

• World International Trade Organization

• World Foreign Trade Organization

• World Domestic Trade Organization

This international organization's primary objective is to make loans to countries geared toward reducing poverty and enhancing economic development.

• World Bank

• World Business

• World International Trade

• World Business Subsidiary