Chapter 3 Quiz Review

Foreign debt is the amount of money that other countries owe the United States.

• True

• False

If a country imports more than it exports, it has trade deficit.

• True

• False

Tariffs on certain goods are used to restrict free trade.

• True

• False

The North American Free Trade Agreement (NAFTA) is an agreement created by the United States, Mexico, and Japan.

• True

• False

Franchise agreements are popular with fast-food companies such as McDonald's, Wendy's, and Burger King.

• True

• False

Which international trade organization or agreement maintains a system of world trade and exchange rates?

• World Bank

  
  

• International Monetary Fund (IMF)

• North American Free Trade Agreement (NAFTA)

• World Trade Organization (WTO)

  
  

Which international trade organization or agreement was created after World War II to provide loans for rebuilding?

• International Monetary Fund (IMF)

  
  

• World Bank

  
  

• World Trade Organization (WTO)

  
  

• North American Free Trade Agreement (NAFTA)

  
  

Which international trade organization or agreement settles trade disputes and enforces free-trade agreements between member countries?

• North American Free Trade Agreement (NAFTA)

• International Monetary Fund (IMF)

  
  

• World Bank

  
  

• World Trade Organization (WTO)

Which international trade organization or agreement's key function is to provide economic aid to less-developed countries?

• World Bank

  
  

• World Trade Organization (WTO)

  
  

• North American Free Trade Agreement (NAFTA)

• International Monetary Fund (IMF)