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WorksheetsInt'l Trade 4/5/6
Total questions: 50
Worksheet time: 25mins
Name
Class
Date
1.
This account records flows of money from the purchase and sale of real estate and financial assets between countries.
a)
current account
b)
financial/capital account
c)
official reserves
2.
Harley-Davidson USA purchase $25 million in production machinery from a Japanese company.
a)
current account
b)
capital/financial account
3.
Andre Preenor, a US entrepreneur, invest $50 million to develop a theme park in the Philippines.
a)
current account
b)
capital/financial account
4.
The current account shows...
a)
international movement of capital
b)
foreign exchange market
c)
international movement of goods and services
d)
international movement of investments
5.
Who typically ends up paying tariffs?
a)
The IMF/World Bank
b)
Importer and/ or consumers
c)
Congress
d)
d. Exporters
6.
An Italian tourist paying for a night in a London hotel would appear on the UK balance of payments:
a)
in the current account
b)
in the capital/financial account
7.
This account records a nations imports and export of goods, services, net investment income and net transfers.
a)
current account
b)
financial/capital account
c)
official reserves
8.
Sending goods to another country to sell.
a)
import
b)
export
c)
donation
9.
Bringing goods in from other country to sell.
a)
import
b)
export
c)
aid
10.
A large company such as Mc Donalds that has operations in more than one country.
a)
domestic corporation
b)
foreign corporation
c)
state corporation
d)
multinational corporation
11.
A non-interest-bearing written order used primarily in international trade that binds one party to pay a fixed sum of money to another party at predetermined future date.
a)
draft
b)
bill of exchange
c)
cable transfer
d)
check
12.
An investment fund that can be undertake a wider range of investment and trading activities than other fund with reference to forex market.
a)
debt servicing
b)
money market operation
c)
foreign exchange
d)
hedge fund
13.
An electronic transfer of fund from one bank account to another.
a)
hedge fund
b)
wire transfer
c)
bill of exchange
d)
draft
14.
FOREX RATE is
a)
domestic currency
b)
value of domestic currency in terms of foreign currency
c)
foreign currency
d)
rate of inflation
15.
Under which system Demand and Supply for FOREX determines the exchange rate?
a)
flexible exchange rate
b)
fixed exchange rate
c)
both
d)
none
16.
It is the country's electronic trading flatform for foreign exchange.
a)
Philippine Dealing System
b)
Reuters
c)
Bloomberg
d)
Banko Sentral ng Pilipinas
17.
Multilateral trade agreement founded in 1947 aimed to lower tariffs on agriculture.
a)
WTO
b)
GATT
c)
NAFTA
d)
APEC
18.
Managed floating system is
a)
flexible system of exchange rate
b)
mixture of fixed exchange rate and floating exchange rate
c)
a system managed by a foreign country
d)
none
19.
The price of one country's currency expressed in another country's currency.
a)
foreign trade
b)
hedge
c)
foreign exchange
d)
exchange rate
20.
Depreciation is
a)
fall in the value of domestic currency in terms of foreign currency
b)
rise in the value of domestic currency in terms of foreign currency
c)
obsolescence of assets
d)
stronger domestic currency
21.
Devaluation is
a)
rise in the value of domestic currency in terms of foreign currency as a deliberate step adopted by the government under fixed exchange rate system
b)
fall in the value of domestic currency in terms of foreign currency as a deliberate step adopted by government under fixed exchange rate system.
c)
fall in the value of domestic currency in terms of foreign currency as a deliberate step adopted by government under floating exchange rate system
d)
rise in the value of domestic currency in terms of foreign currency as a deliberate step adopted by government under floating exchange rate system
22.
. Appreciation of domestic currency will
a)
discourage imports
b)
encourage exports
c)
encourage imports
d)
none
23.
Under flexible system exchange rate is determined where
a)
demand for FOREX = supply of FOREX
b)
demand for FOREX > Supply of FOREX
c)
by the government
d)
by central bank action
24.
Which of the following is a source of FOREX supply
a)
imports
b)
exports
c)
direct purchase abroad
d)
money laundering
25.
What are the services normally offered by the banks in order to facilitate international trading?
a)
project finance, trade finance and corporate finance
b)
trade finance, project finance, foreign exchange transaction and corporate finance
c)
trade finance, foreign exchange transaction and corporate finance.
d)
project finance, foreign exchange transaction and corporate finance.
26.
The main purpose of foreign exchange is...
a)
a to convert and trade foreign currencies
b)
to invest money in foreign countries
c)
to borrow money from foreign countries
d)
to do import and export.
27.
The letter of credit is
a)
the most widely used trade finance instrument.
b)
reducing risk of non payment
c)
obtaining payment upon presentation of documents.
d)
issued by the transportation company.
28.
It is the most common transfer document.
a)
a. insurance document
b)
transfer document
c)
commercial document
d)
bill of lading
29.
The goods are shipped to a foreign distributor who sells them on behalf of the exporter.
a)
consignment purchase agreement
b)
cash advance
c)
down payment
d)
letters of credit
30.
The remitting bank is the exporter's bank and act as:
a)
takes up the role of ensuring that buyers pays for goods before shipping documents are release
b)
the exporter's agent in collecting payment from the importer.
c)
sale transaction is settled by the bank
d)
distributor of exported goods.
31.
A letter of credit that cannot be change unless both buyer and seller agreed to make amendments thereof.
a)
revocable L/C
b)
irrevocable L/C
c)
sight L/C
d)
unconfirmed L/C
32.
An unconfirmed credit does not require the advising bank to add its own payment undertaking and therefore:
a)
leaves the liability to the seller with the issuing bank
b)
leaves liability to buyer
c)
the bank take responsibility of making payment
d)
none of these
33.
The buyer pays seller a portion of the cost of the goods.
a)
open account
b)
down payment
c)
consignment
d)
pre payment
34.
The importer must send payment to the supplier prior to shipment of goods.
a)
downpayment
b)
documentary collection
c)
wire transfer
d)
cash-in-advance
35.
It cover the merchandise being shipped against damage or loss.
a)
commercial documents
b)
right packaging
c)
insurance documents
d)
transfer documents
36.
A commercial documents whereby bank releases goods in the possession of the entrustee.
a)
trust receipt
b)
draft
c)
bill of lading
d)
letters of credit
37.
When the importer/buyer has a strong credit history and is well-known to the exporter/seller.
a)
documentary collection
b)
open account
c)
pre-payment
d)
consignment
38.
The difference between what a country exports and what it imports:
a)
trade deficit
b)
trade surplus
c)
balance of trade
d)
net export
39.
29. C + I + G = _______
a)
GDP
b)
PCI
c)
Net National Product
d)
balance of payment
40.
To focus on producing one thing to improve productivity is known as:
a)
specialization
b)
international trade
c)
absolute advantage
d)
supply and demand
41.
A trade agreement between 27 countries of with the same currency and open trade between those nations.
a)
NAFTA
b)
WTO
c)
EU
d)
ASEAN
42.
All of the following are terms used to describe limitations on trade except?
a)
trade barrier
b)
. sanction/embargo
c)
trade restrictions
d)
open trade
43.
This trade barrier limits the number of products that can be brought into a country.
a)
tariff
b)
qouta
c)
embargo
d)
subsidy
44.
Watches made in Norway are worn by people in California.
a)
import
b)
export
45.
Tires used in Tennessee factories are used on cars in Europe.
a)
import
b)
export
46.
The United States EXPORTS
a)
kangaroos
b)
airplanes
c)
cocoa beans
47.
Why does the United States need to import products?
a)
The US does not import products.
b)
Some are easier and cheaper to make in other countries
c)
The US makes all of its own products.
48.
China is known as :
a)
The red invasion
b)
The communist threat
c)
The world factory
d)
The best economic system
49.
Developed nations have all of the following except:
a)
better education
b)
high levels of technology
c)
better health
d)
higher populations
50.
Taxes on import.
a)
VAT
b)
Custom duties
c)
Excise
d)
none
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