Trade, Currency, and Exchange Rate Test

Sending goods to another country to sell.

• import

• export

Bringing goods in from another country to sell.

• import

• export

The development of a worldwide economy where resources flow fairly freely across borders.

• Globalization

• Economy

• GDP

• Economic Independence

What are some negatives of globalization?

• Workers are exploited in sweatshops

• Pollution and deforestation

• Low wages for factory workers in Asia and Africa

• All of the answers are correct

A three-country trade agreement negotiated by the governments of Canada, Mexico, and the United States that took effect in 1989.

• The UN

• NAFTA

• NATO

• IMF

Price of one currency in relation to other currencies in the international exchange market is known as:

• Equilibrium rate

• Fixed exchange rate

• Exchange rate

• Flexible exchange rate

The rate which is determined by the government is known as :

• Flexible exchange rate

• Fixed exchange rate

• Floating exchange rate

• None of these

Due to depreciation of foreign currency, the supply of foreign currency in domestic economy will;

• Increase

• Not change

• Either increase or decrease

• Decrease

When the exchange rate Rises due to managed floating, it is called;

• Devaluation

• Appreciation

• Depreciation

• Revaluation

Identify the second most traded currency around the world, also used in Italy:

• Yen

• American Dollar

• Euro

• Peso