#1
Which of the following is an example of a current account transaction?
Import of machinery
Foreign aid received
Purchase of foreign stocks
Export of goods
#2
What does the term 'balance of payments' refer to?
A country's total imports and exports
A country's economic output
A record of all transactions between one country and the rest of the world
A country's total foreign debt
#3
What is the term used to describe a situation where a country exports more goods and services than it imports?
Trade deficit
Trade surplus
Balance of payments deficit
Balance of payments surplus
#4
Which of the following is an example of a trade barrier?
Export subsidies
Free trade agreements
Tariffs
Customs union
#5
What is the term used to describe a currency whose value is determined by the market forces of supply and demand?
Fixed exchange rate
Pegged exchange rate
Floating exchange rate
Managed exchange rate
#6
Which organization is responsible for issuing the Special Drawing Rights (SDRs)?
World Bank
International Monetary Fund (IMF)
World Trade Organization (WTO)
United Nations (UN)
#7
Which of the following is a capital account transaction?
Foreign direct investment
Import of goods
Export of services
Payment for imports
#8
What is the main function of the International Monetary Fund (IMF)?
To promote international trade
To provide financial assistance to developing countries
To set exchange rates
To regulate international banking
#9
What is the main function of the World Trade Organization (WTO)?
To regulate global financial markets
To provide financial assistance to developing countries
To promote free and fair trade among nations
To set international monetary policy
#10
Which economic theory emphasizes reducing government intervention in international trade?
Mercantilism
Protectionism
Neoliberalism
Keynesian economics
#11
What is the term used to describe the difference between a country's exports and imports of goods?
Trade balance
Current account balance
Capital account balance
Balance of payments
#12
Which of the following is an example of a non-tariff barrier to trade?
Quotas
Embargoes
Subsidies
Customs duties
#13
What is the 'Bretton Woods Agreement'?
An agreement to establish the World Bank
An agreement to create the International Monetary Fund
An agreement to peg currencies to the US dollar
An agreement to promote free trade
#14
What is the significance of the Marshall Plan?
It established the European Union
It provided aid to European countries after World War II
It created the United Nations
It initiated the General Agreement on Tariffs and Trade (GATT)
#15
What does the term 'dumping' refer to in international trade?
Selling goods in a foreign market at a higher price
Selling goods in a foreign market at a lower price than in the domestic market
Imposing tariffs on imports
Exporting goods without restrictions
#16
Which economic theory advocates for government intervention to protect domestic industries from foreign competition?
Mercantilism
Neoliberalism
Keynesian economics
Protectionism
#17
What does the term 'comparative advantage' refer to in international trade?
A country's ability to produce goods at a lower opportunity cost than another country
A country's ability to produce goods using fewer resources than another country
A country's ability to maintain a trade surplus indefinitely
A country's ability to set trade barriers to protect domestic industries