Liberty
University BUSI 303 quiz 3 solutions answers right
How
many versions: 6 different versions.
Two most popular products traded on the security exchange
markets are stocks and bonds
The OTC Market has gradually evolved into the largest,
fastest, and most flexible currency trading market in the world
In 1979, Mexican President Carlos Salinas invited United
States President Bill Clinton to organize a trade agreement that would increase
investment and decrease tariffs between the U.S. and Mexico
Preferential Trade Areas are suitable in cases where
economic structures in signatory nations complement one another and trade in
products that do not compete with each other
Which of the following is not an industrial product exchanged
within the global financial market
OPEC was founded in 1960 in Baghdad
Approximately 50 percent of all world trade is conducted
through regional trade agreements.
Regional integration is the process whereby countries remove
barriers to trade between themselves, but each country determines its own
barriers against nonmembers.
Currency arbitrage means buying a currency in one market at
a low price and reselling moments later in another market at a higher price.
A study conducted by the OECD reported the students who had
the highest level of reading proficiency include
A Common Market includes all of the elements of a Customs
Union and freedom of movement of the four factors of production: goods,
services, capital, and labor
The goals of the The Lomé Convention
are threefold: (1) the reduction and eventual eradication of poverty in
Signatory Island and land-locked nations, (2) sustainable economic development
in Signatory Island and land-locked nations, and (3) the gradual integration of
signatory countries into the world economy
Which of the following countries is NOT a founding member of
APEC
Mercosur was established in 1991 with the intent of
increasing the competitiveness of its five member nations’ economies through
the use of research on economic development. Full-member nations include
Argentina, Brazil, Paraguay, Uruguay, and Venezuela
Which of the following is true concerning the IMF
The end result of the global competition is _________
products and ________ for consumers
The Foreign Exchange Market is a physical and virtual
institutionalized structure whereby currency of one country is exchanged to
currency of another country
The ________ of the world have become highly interdependent
because of improvements in ________ and transportation technologies and the
lowering of barriers to trade
Which of the
following is true concerning the IMF?
Participation
is voluntary, but before qualifying to adopt the Euro, a country must
participate in the _______as one of the convergence criteria for entry
In the
United States, the ________ is responsible for regulating the growth of the
economy
All of the
following are EU Member countries except
Which of the
following countries is NOT a founding member of APEC
The goals of
the The Lomé Convention are threefold: (1) the reduction and eventual
eradication of poverty in Signatory Island and land-locked nations, (2)
sustainable economic development in Signatory Island and land-locked nations,
and (3) the gradual integration of signatory countries into the world economy.
The most
prominent major financial markets are located
All of the
following are important EU institutions except
Preferential
Trade Areas are suitable in cases where economic structures in signatory
nations complement one another and trade in products that do not compete with
each other
Two most
popular products traded on the security exchange markets are stocks and bonds
CACM was
established in 1960 between
In 1979,
Mexican President Carlos Salinas invited United States President Bill Clinton
to organize a trade agreement that would increase investment and decrease
tariffs between the U.S. and Mexico.
Mercosur was
established in 1991 with the intent of increasing the competitiveness of its
five member nations’ economies through the use of research on economic
development. Full-member nations include Argentina, Brazil, Paraguay, Uruguay,
and Venezuela
On August
15, 1971, President _______ announced that the U.S. would no longer redeem
currency for gold
Currency
arbitrage means buying a currency in one market at a low price and reselling
moments later in another market at a higher price
The end
result of the global competition is _________ products and ________ for
consumers
In the
United States, the Federal Reserve Bank is responsible for regulating the
growth of the economy, which is accomplished by the increase or decrease of
money supply
Regional
integration is the process whereby countries remove barriers to trade between
themselves, but each country determines its own barriers against nonmembers
Which of the
following countries is NOT a member of Mercosur
Which of the
following is not an industrial product exchanged within the global financial
market
Select the two reasons that global financial markets are important to borrowers
The 1922 FordneyMcCumber Act raised U.S. tariffs to historically high levels
Approximately 50 percent of all world trade is conducted through regional trade agreements
The
Foreign Exchange Market is a physical and virtual institutionalized structure whereby currency of one country is exchanged to currency of another country
If a currency price is expected to rise in the future, what is the higher price a buyer pays?
Which
of the following is not an industrial product exchanged within the global financial
market?
Which of the following is NOT a problem ECOWAS faces?
Use the FX market to facilitate international business activities
The Market has gradually evolved into the largest, fastest, and most flexible
currency trading market in the world
Preferential Trade Areas are suitable in cases where economic structures in signatory nations complement one another and trade in products that do not compete with each
other
Two
most popular products traded on the security exchange markets are stocks and
bonds.
The most prominent major financial markets are located
The
majority of transactions on the FX include operations with the Euro, where one party sells or buys dollars using other world currencies
Which of the following is the order of the stages of regional economic integration?
All of the following are EU
Member countries except
OPEC
was founded in 1960 in Baghdad
The
goals of the The Lomé Convention are threefold: (1) the reduction and eventual eradication of poverty in Signatory Island and landlocked nations, (2) sustainable
economic development in Signatory Island and landlocked nations, and (3) the gradual integration of signatory countries into the world economy
Primary guardians of national currencies and usually responsible for setting monetary policy and exchange rate policy
The European Community established its Exchange Rate Mechanism (ERM) in 1979 and
formed the initial steps for the creation of a single European currency
The
participation in a trading bloc leads to the minimization of duplication, thin spreading
of
resources, and wasteful competition.
Mercosur was established in 1991 with the
intent of increasing the competitiveness of its five member nations’ economies
through the use of research on economic development. Full-member nations
include Argentina, Brazil, Paraguay, Uruguay, and Venezuela
Regional integration is the process whereby
countries remove barriers to trade between themselves, but each country
determines its own barriers against nonmembers
ANCOM was established in 1990 with the Agreement
of Cartagena, or Andean Pact, between Bolivia, Peru, Ecuador, and Chile
The ________ of the world have become highly
interdependent because of improvements in ________ and transportation
technologies and the lowering of barriers to trade.
CACM was established in 1960 between
Reasons that global financial markets are
important to lenders
Approximately 50 percent of all world trade is
conducted through regional trade agreements.
Currency arbitrage means buying a currency in
one market at a low price and reselling moments later in another market at a
higher price
With 11 beginning members in 1952, the European
Union has now grown to a total of 28 members
Generally the market makers on the foreign
exchange
The OTC Market has gradually evolved into the largest,
fastest, and most flexible currency trading market in the world
Which of the following is true concerning the
IMF?
Which of the following is generally
the market makers on the foreign exchange
Trading blocs are committed to
officiate and develop trade activities for signatory nations
Trading blocs are a notable feature
of the [International] economy,
enabling [scope] and [scale] advantages
Common Market
Free Trade Area
Which of the following is the
primary guardians of national currencies and usually responsible for setting
Select the reasons that global
financial markets are important to lenders (select more than one answer).
Preferential Trade Areas
Which of the following uses the FX
market to facilitate international business activities
A floating exchange rate allows
rates to freely float and change according to market supply and demand; in
addition, stable exchange rates are a sign of a struggling economy or an
economy in crisis
Have to be calculated when parties are conducting a trade in currencies
other than USD
American: value of foreign currency in domestic currency
Deliberate downward adjustment in the official exchange rate
Simultaneous purchase and sale of a currency for different
delivery dates
Helps finance economic development in poor countries
Currency of one country is excahnged to currency of an other
country
Rate at which currency can be purchased in the future
Buying a commodity when its price is low and then reselling it
after prices rise in order to make a profit
Maintain order in the global monetary system
Exchange rate of one currency in units of another currency
immediately "on the spot"
Upward change in the currency's value
Represents shares of equity that a company releases for sale
Currencies that can easily be exchanged for other currencies
Formed the initial steps for the creation of a single European
currency
Represent contracts for future delivery of a commodity
European: value of domestic currency in foreign currency
When a government/Central Bank ties the official exchange rate
to another country's currency or price of gold
Meansures taken by a company to protect from the loss that may
occur due to exchange rate or currency fluctuation
Monetary authority for a country/operates like a central bank
Decentralized market of securities not listed on an exchange
market
South Korea, Hong Kong, Singapore, and Taiwan
Caribbean Community and Common Market
NAFTA, EU, MERCOSUR, ASEAN
Government financial assistance toward sectors of home economy;
creates/provides influx of capital
U.S.-Chile Agreement of 2003
Peace, freedom, no violence, prosperity and economic progress,
reduce poverty, democracy/healthy environment
Africa, Pacific, Caribbean Pact (ACP); Lome Convention
Financial methods for protecting national industries form
competition by foreign corporations
Andean Common Market
European Union
Countries reduce-remove tariff/non-tariff barriers to trade
between themselves; decide own barriers for non-members
Rarely fall neatly into one of the distinct stages
Promote economic prosperity and stability
Bureaucratic formalities; slow down imported product from
entering the domestic market
Includes all of the elements of a Customs Union and freedom of
movement of the four factors of production
Laws and regulations affecting trade: ensure accountability and
quality
Group of nations in a geographic region engaged in economic
integration; core element of REI
Mercosur
Of all world trade agreements are organized as trading blocs
Limit amount of importsinto a country; makes domestic consumers
buy domestic (Country/Region) products
Name the two reasons that global financial markets are important
to borrowers
Name the two reasons that global financial markets are important
to lenders
What happened after the Gold Standard was discontinued in 1971?
Into what has the Foreign Exchange Market gradually evolved?
List 3 things the functions of the FX market allow
What is the difference between a spot rate and forward rate?
If a currency price is expected to rise in the future, what is
the higher price a buyer pays?
Who are the primary guardians of national currencies and usually
responsible for setting monetary policy and exchange rate policy?
Who are generally the market makers on the foreign echange?
Who uses the FX market to facilitate international business
activites?
T/F: Two most popular products traded ont he security exchange
markets are stocks and bonds
What is the Eurocurrency Market?
Describe a floating exchange rate system
What do stable exchange rates attract?
What are unstable exchange rates a sign of?
T/F: The Smoot-Hawley Act of June 1930 raised US tariffs to
historically high levels
Explain how a managed float system differs from a floating
exchange rate system
Explain what the Maastricht Treaty called for
List the five elements which are addressed int he process of
integration
Name two reasons (intentions) for forming a trading bloc
Describe what trading blocs are notable feature of and why
T/F: Trading blocs provide protection from global competitiveness
List the five objectives behind the desire to protect the trade
interest of participating regions
To what are trading blocs committed; what do they help integrate
List the two global environmental business agendas that trading
blocs typicaly maintain for participating nations
limiting the amount of imports into the country so that domestic
consumers buy products made by their countries in their region
establishing beaurocratic formalities that slow down the ability
for the imported product from abroad to enter the domestic market
government financial assistance toward sectors of the home
economy so that they have an influx of capital
allow preferential access to certain products from certain
nations via the reduction of tariffs
Tariffs, quotas, and preferences on most (if not all) goods
among members are removed, and each emember can determine its own trade
policies with nonmembers
All barriers of trade among members are removed, and a common
external trade policy is adopted
It includes all of the elements of a customs union, and freedom
ofmovement of the four factors of production: goods, services capital and labor
an agreement wherein nations remove all barriers to trade and
the movement of labor and capital and erect a common trade policy against
nonmembers
determined by competition and drive
toward profit
which of the following is not a problem
ECOWAS faces?
a.attempting to unite the region
b.hunger
c.updating the current electrical grid to create more reliable energy
d. the strict use of passports as the means of travel between the countries
a.attempting to unite the region
b.hunger
c.updating the current electrical grid to create more reliable energy
d. the strict use of passports as the means of travel between the countries
T/F regional integration is the process
whereby countries remove barriers to trade between themselves, but each country
determines its own barriers against nonmembers
18 of the European union nations have
formed a single currency area called
T/F approximately 50 percent of all
world trade is conducted through regional trade agreements
T/F a common market includes all of the
elements of a customs union and freedom of movement of the four factors of
production: goods, services, capital, and labor
which of the following countries is NOT
a founding member of APEC?
a. New Zealand
b. China
c. Singapore
d. Indonesia
a. New Zealand
b. China
c. Singapore
d. Indonesia
T/F in 1979, Mexican President Carlos
Salinas invited US President Bill Clinton to organize a trade agreement that
would increase investment and decrease tariffs between the US and Mexico
T/F Mercosur was established in 1991
with the intent of increasing the competitiveness of its five member nations
economies through the use of research on economic development. Full member
nations include Argentina, Brazil, Paraguay, Uruguay, and Venezuela
T/F trading blocs provide protection
from global competitiveness
T/F ANCOM was established in 1990 with
the Agreement of Cartagena, or Andean Pact, between Bolivia, Peru, Ecuador, and
Chile
T/F OPEC was founded in 1960 in Baghdad
CACM was established in 1960 between
who?
Which of the following is not a member
of the OECD?
Greenland
Korea
Israel
Greece
Greenland
Korea
Israel
Greece
A study conducted by the OECD reported
the students who had the highest level of reading proficiency include
T/F the participation in a trading bloc
leads to the minimization of duplication, thin spreading resources and wasteful
compeition
What is the order of the stages of
regional economic integration?
T/F Preferential trade areas are
suitable in cases where economic structures in signatory nations complement one
another and trade in products that do not compete with each other
Which of the following countries is not
a member of Mercosur?
a. Brazil
b. Argentina
c. Uruguay
d. Costa Rica
a. Brazil
b. Argentina
c. Uruguay
d. Costa Rica
All of the following are important EU
institutions except
a. Euro Zone
b. Council of the European Union
c. European Commission
d. European Court of Justice
a. Euro Zone
b. Council of the European Union
c. European Commission
d. European Court of Justice
On august 15, 1971, president
The OCT market has gradually evolved into
the largest, fastest,
The _______ of the world have become
highly interdependent
Currency arbitrage means buying a currency
Select the two reasons that global
financial markets are
In the united states the federal reserve
bank is responsible for regulating
Participation is voluntary
With 11 beginning members in 1952
the foreign exchange market is a physical
and virtual
the 1922 Fordney
All of the following are EU Member
countries except
The Role of the IMF is to supervise the
exchange rate practices of member
Primary guardians of national currencies
and usually responsible
Membership requirements for the European
Monetary Union
Which of the following is not an
industrial product
The law of PPP states that similar
Use the FX market to Facilitate
international business activities
The most prominent major financial markets
are located
the end result of the global competition
is
Two most popular products traded on the
security exchange markets are stocks and bonds
in the United States, the _________ is
responsible for regulating the growth of the economy
A pegged exchange rate is an exchange rate
that is freely
If a currency price is expected to rise in
the future, what is the higher price a buyer pays?
The European Community is established its
Exchange Rate Mechanism
Reasons that Global financial markets are
important to lenders
Which of the following is NOT a typical
The Majority of transactions on the FX
Generally the market makers on the foreign
exchange
The ________ Market has gradually evolved
into the largest, fastest,
Which of the following is true concerning
the IMF
Which of the following is NOT a problem
ECOWAS faces
Regional integration is the process
whereby countries remove
Eighteen of the European union nations
Approximately 50 percent of all world
The goals of the The Lome Convention are
threefold:
A Common Market includes all of the
elements of a custom union
Which of the following countries is NOT a
founding member of APEC
In 1979 mexican president Carlos Salinasa
invited the United States
Mercosur was established in 1991 with the
intent of increasing the competitiveness of its five member nations
Trading blocs provide protection from
global competitiveness
ANCOM was established in 1990
OPEC was founded in 1960
CACM was est in 1960 between
Which of the following is not a member of
OECD
A study conducted by the OEDC reported the
students
The Participation in a trading bloc leads
to the minimization of duplication
Which of the following is the order of the
stages of regional economic integration
Preferential Trade Areas are suitable in
cases where economic
Which of the following countries is NOT a
member of Mercosur
All of the following are important EU
institutions except
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