Deck 7: International Trade and Currency Exchange

Question 1

Balance of Trade =Net earnings on exports ___________

A)Net payment of Import
B)Net payment of export
C)Cost of Goods Sold
D)Income Tax

Answer 1

Net payment of Import

Question 2

Balance of Trade is a _________ concept.

A)Wider
B)Small
C)Narrow
D)Favorable

Answer 2

Narrow

Question 3

BOP Stands for ___________

A)Balance of Profit
B)Balance of Payment
C)Balance of Positive impact
D)Balance of Profit in Trade

Answer 3

Balance of Payment

Question 4

balance of payment = Current Account + balancing Item _____________

A)Saving Account
B)Fixed Deposit Account
C)Capital Account
D)Reserve Account

Question 5

Balance of payment Identity equation ______________

A)FA + RA + CA =0
B)RA + CA+ FA = 0
C)CA + FA+ RA = 0
D)CA + FA = 0

Question 6

Balance of payment is a statement that records all __________ transactions between a country and the rest of the world.

A)Goods
B)Cash
C)Credit
D)Monetary

Question 7

IIP is a subset of the national _____________

A)Statement
B)Profit and Loan Account
C)Balance sheet
D)Financial Asset and Liability

Question 8

___________ was the first university implemented system for valuing currencies.

A)Gold Exchange
B)Gold Standard
C)Silver Coin
D)Bullions

Question 9

International Monetary fund which was given the task of implementing and monitoring the__________

A)BWS
B)IBRD
C)Nixon Stock
D)BSW

Question 10

BWS came into effect in July______________

A)1939
B)1945
C)1944
D)1970

Question 11

__________ supports sustainable investments in the private sector in developing countries.

A)IFC
B)IMF
C)World Bank
D)RBI

Question 12

Foreign Investment are recorded in the _________ of balance of payments.

A)Current Account
B)Saving Account
C)Capital Account
D)Fixed Deposit Account

Question 13

___________ is widely used by Government for formulating policies for economy.

A)BOP
B)BOT
C)FDI
D)SDR

Question 14

Under gold standard system, countries gold reserves were required to be in custody of _________

A)Swiss Bank
B)Central Bank
C)Foreign Bank
D)Reserve Bank

Question 15

________ is also known as price quotation.

A)Direct Quote
B)Indirect Quote
C)Spot Quote
D)Spread Quote

Question 16

_________ is also known as price Quantity Quote.

A)Forward Quote
B)Indirect Quote
C)Spot Quote
D)Spread Quote

Question 17

_____ is todays quote.

A)Spot Quote
B)Forward Quote
C)Inter Bank Quote
D)Mid Quote

Question 18

___________ is also known as Bid office spread.

A)Direct Quote
B)Mid Quote
C)Spread Quote
D)Cross Currency Quote

Question 19

___________ is also known as reference rate.

A)Interbank Quote
B)Cross Currency Quote
C)Mid Quote
D)Bid and Ask Quote

Question 20

Price of _________currency in terms of national currency.

A)Home
B)Foreign
C)National
D)Direct Rate

Question 21

US Dollar serves as a _________ Currency.

A)Vehicle
B)Foreign
C)National
D)Forex Market

Question 22

Bid rate is lesser than _____________ rate.

A)Inverse
B)Ask
C)Cross
D)Foreign

Question 23

If two banks are quoting the following GBP rates: Bank A: Rs.78.9810-79.1110 and Bank B: Rs.79.0110-19.2350. The arbitrage opportunity will be _________________

A)100
B)0
C)124
D)142