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WorksheetsInternational Finance & Exchange
Total questions: 22
Worksheet time: 11mins
Name
Class
Date
1.
The World Bank was established in 1922.
a)
true
b)
false
c)
Do not choose
d)
Do not choose
2.
One U.S. dollar = 1.01389 Japanese yen.
a)
true
b)
false
c)
Do not choose
d)
Do not choose
3.
Exchange rates affect the prices of goods.
a)
true
b)
false
c)
Do not choose
d)
Do not choose
4.
Floating exchange rates occur when the government (central bank) of a country decide what its currency will be worth relative to other countries.
a)
true
b)
false
c)
Do not choose
d)
Do not choose
5.
Licensing is the transfer of rights and permission to produce and sell a product to a foreign firm.
a)
true
b)
false
c)
Do not choose
d)
Do not choose
6.
All of the following direct international law EXCEPT which one of these?
a)
International Court of Justice
b)
Permanent Court of Arbitration
c)
Committee of International Trade
d)
International Criminal Court
7.
Which of the following occurs when the forward exchange rate does NOT equal the spot exchange rate?
a)
Trade deficit
b)
Increased inflation
c)
World bank deficit
d)
Interest rate parity
8.
Which of the following methods of entering international markets is the most complex and requires the most risk?
a)
Joint venture
b)
Licensing
c)
Exporting
d)
Strategic alliance
9.
Which of the following is NOT one of the economic conditions affecting international business?
a)
Inflation rates
b)
Unemployment rates
c)
Voting rates
d)
GDP
10.
The International Monetary Fund has approximately 100 members.
a)
true
b)
false
c)
Do not choose
d)
Do not choose
11.
the subject of economics across national boundaries
a)
International Finance
b)
GDP
c)
Inflation Rate
d)
Interest Rate
12.
amount by which a country's imports exceed its exports
a)
Trade Deficit
b)
International Finance
c)
GDP
d)
Inflation Rate
13.
unit of metal or paper money used in exchange for goods or services
a)
Currency
b)
Trade Deficit
c)
International Finance
d)
GDP
14.
the transaction method used for making payments between countries; the simultaneous act of buying one currency and selling the other
a)
Foreign Exchange
b)
Currency
c)
Trade Deficit
d)
International Finance
15.
the current price of one currency in relation to another
a)
Exchange Rate
b)
Foreign Exchange
c)
Currency
d)
Trade Deficit
16.
when a currency is determined by supply and demand for a currency relative to other currencies
a)
Floating Exchange Rate
b)
Exchange Rate
c)
Foreign Exchange
d)
Currency
17.
when the government (central bank) of a country decides what its currency will be worth relative to other currencies
a)
Fixed Exchange Rate
b)
Floating Exchange Rate
c)
Exchange Rate
d)
Foreign Exchange
18.
the rate used for immediate delivery of a foreign-exchange contract
a)
Spot Rate
b)
Fixed Exchange Rate
c)
Floating Exchange Rate
d)
Exchange Rate
19.
the rate for currencies exchanged today for delivery in the future, usually up to 180 days
a)
Forward Rate
b)
Spot Rate
c)
Fixed Exchange Rate
d)
Floating Exchange Rate
20.
the rate a lender charges to a borrower for a loan, presented as a fixed percentage of the total amount borrowed
a)
Interest Rate
b)
Forward Rate
c)
Spot Rate
d)
Fixed Exchange Rate
21.
rate of increase of prices in a country each year
a)
Inflation Rate
b)
Interest Rate
c)
Forward Rate
d)
Spot Rate
22.
gross domestic product; total amount of goods/services produced in a country each year
a)
GDP
b)
Inflation Rate
c)
Interest Rate
d)
Forward Rate
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