Quiz: Imports, Exports, and Exchange Rates

What does a country have when its exports are greater than its imports?

• Trade deficit

• Trade surplus

• Balance of payments

• Currency depreciation

What is the U.S.'s most frequent trade partner in terms of total trade volume?

• China

• Canada

• Mexico

• Germany

Which of the following is NOT included in the current account?

• Import of cars

• Export of music

• Foreign aid

• Purchase of U.S. stocks by foreigners

What happens when the U.S. dollar appreciates?

• U.S. exports become cheaper

• U.S. imports become cheaper

• Foreign goods become more expensive

• U.S. exports rise

What term refers to when a country’s central bank actively keeps the currency within a set range?

• Floating exchange

• Pegged currency

• Market rate

• Balance of trade

What is one downside of free trade mentioned in the video?

• Rising domestic prices

• Job losses in specific industries

• Decreased consumer choices

• Lower total output

Why might countries run trade deficits?

• To lower inflation

• To strengthen their currency

• Because they consume more than they produce

• To increase tariffs

What does the financial account track?

• Imports and exports

• Investment flows like stocks and bonds

• Donations and aid

• Government tax policy

Which organization helps reduce trade barriers globally?

• IMF

• WTO

• UN

• OPEC

What is the main point about trade in the video?

• It always benefits every individual

• It has winners and losers but raises overall standards

• It only benefits rich countries

• Trade deficits should always be avoided