International Trade Concepts Quiz

What are imports?

• Items sold to other countries

• Items bought from other countries

• The difference between exports and imports

• Goods that are neither bought nor sold

What is the balance of trade (BoT)?

• The total value of goods produced in a country

• The difference between a country's total exports and imports

• The total number of goods imported

• The total number of goods exported

What is a trade surplus?

• When imports are more than exports

• When exports are more than imports

• When imports and exports are equal

• When there are no imports or exports

What does a positive or favorable balance of payments indicate?

• The nation receives more money in a year than it pays out

• The nation spends more money on imports than it earns from exports

• The nation has a trade deficit

• The nation has a negative balance of payments

What does a negative balance of payments mean?

• The amount of money sending out is more than the amount received

• The nation receives more money than it sends out

• The nation has a trade surplus

• The nation has a balanced budget

What is the balance of trade?

• The difference between a country's total exports and total imports.

• The difference between the amount of money that comes into a country and the amount that goes out.

• The total value of goods produced by a country.

• The total amount of foreign investment in a country.

What is the balance of payments?

• The difference between a country's total exports and total imports.

• The difference between the amount of money that comes into a country and the amount that goes out.

• The total value of goods produced by a country.

• The total amount of foreign investment in a country.

Which of the following is included in the US Current Account?

• Only financial investments

• Trade in goods and services, as well as income from investments and other transfers

• Only capital account transactions

• Only trade in goods

Which factor affects the value of a country's currency by reducing its buying power?

• Balance of payments

• Economic conditions

• Political stability

• Trade agreements

What does it is the exchange rate of 1000 United States Dollar to 0.86 Euro ?

• 1162 .80 Euros

• 860 Euros

• 1.000 Euros

• 0.86 Euros