IF Quiz 2

An -------- record of all (observable) transactions between domestic and foreign residents that occur during a given period of time (usually a year).

• accounting

• economic

• abreviate

• elborate

The system of fixed exchange rates that prevailed between the end of World War II and 1973 ----------------

• Flexible Exchange Rate

• Bretton Woods System

• Bimetallism

• Classical Gold Standard

The essential weakness of the -------------- was its reliance on a large degree of macroeconomic policy coordination between its participants.

• Gold Standard

• Flexible Exchange Rate

• Bretton Woods System

• Interwar System

-------------------- is a term used to describe a financial account surplus.

• Capital Outflow

• National Savings

• National Lending

• Capital Inflow

--------------- refers to the component of the Balance of Payments that records imports and exports of goods and services.

• Current Account

• Capital Account

• Services Account

• Official Reserve

The component of the Balance of Payments that records purchases and sales of assets with foreign residents is -------------------

• Current Acountc

• Financial Account

• Services Account

• Lending Account

----------- refers to International capital flows in which residents (usually firms) of one country acquire a controlling stake in a foreign business.

• FPI

• FII

• FDI

• GDR

A world-wide, 24-hour market in which bank deposits denominated in different currencies are exchanged is the ------------------

• Inter Bank Market

• International Money Market

• International Capital Market

• Foreign Exchange Market

Foreign Exchange trading takes place almost exclusively between large commercial banks, multinational corporations, central banks, and foreign exchange -------------.

• brokers

• market makers

• speculators

• arbitrageurs

An informal ‘over-the-counter’ market in which firms can enter into contracts with large commercial banks which specify that a certain amount of foreign exchange will be bought or sold on a given future date at a prespecified exchange rate is --------------------------

• spot market

• forward market

• derivative market

• option market