International Finance
What is the primary international reserve currency used in global trade and finance?
a) Euro
b) Yen
c) Dollar
d) Yuan
Answer: c) Dollar
What is the primary objective of a central bank when it conducts "open market operations"?
a) To regulate stock market volatility
b) To influence interest rates and the money supply
c) To control inflation
d) To promote international trade
Answer: b) To influence interest rates and the money supply
What is the term for the percentage of the labor force that is unemployed and actively seeking employment?
a) Labor force participation rate
b) Inflation rate
c) Unemployment rate
d) Labor productivity
Answer: c) Unemployment rate
What is the term for a measure of the responsiveness of the quantity demanded of a good to changes in its price?
a) Elasticity
b) Equilibrium
c) Subsidy
d) Surplus
Answer: a) Elasticity
Do we have more Econ or Finance students at UAEU?
answer: Finance
What is the term for a government's decision to lower the value of its currency relative to other currencies, typically to boost exports?
a) Appreciation
b) Devaluation
c) Pegging
d) Stabilization
Answer: b) Devaluation
In the context of personal finance, what does the term "credit score" represent?
a) The total income a person earns
b) The amount of debt a person has
c) A numerical representation of a person's creditworthiness
d) The value of a person's assets
Answer: c) A numerical representation of a person's creditworthiness
In macroeconomics, what does the term "Gini coefficient" measure?
a) Income inequality
b) Gross domestic product (GDP)
c) Consumer price index (CPI)
d) Fiscal policy effectiveness
Answer: a) Income inequality
In microeconomics, what is the term for the loss of potential gain from other alternatives when one alternative is chosen?
a) Marginal cost
b) Opportunity cost
c) Average revenue
d) Sunk cost
Answer: b) Opportunity cost
Which bank recently collapsed in the US?
a)Bank of America
b) Silicon Valley Bank
c) JPMorgan Chase
d) Citigroup
Answer: b) Silicon Valley Bank
What is the name of the system that preceded the floating exchange rate system and allowed participating countries to fix their exchange rates to the U.S. dollar, which was tied to gold?
a) Bretton Woods system
b) Gold standard
c) Eurozone
d) Currency board
Answer: a) Bretton Woods system
What is the term for the process of spreading an investment across various asset classes, such as stocks, bonds, and real estate, to reduce risk?
a) Concentration
b) Diversification
c) Speculation
d) Leverage
Answer: b) Diversification
What is the term for a situation where a government spends more money than it collects in revenue, resulting in a budget deficit?
a) Fiscal surplus
b) Fiscal policy
c) Fiscal responsibility
d) Fiscal deficit
Answer: d) Fiscal deficit
What is the term for a situation where a firm's long-run average total cost decreases as it produces more output?
a) Economies of scale
b) Diseconomies of scale
c) Marginal utility
d) Perfect competition
Answer: a) Economies of scale
What is the World's Oldest Currency Still in Use?
a) British Pound Sterling
b) United States Dollar
c) Japanese Yen
d) Euro
Answer: a) British Pound Sterling
Which of the following factors can affect a country's balance of payments?
a) Changes in government spending
b) Changes in consumer preferences
c) Changes in interest rates
d) All of the above
Answer: d) All of the above
When a company raises capital by selling shares of ownership to investors, what type of financing is this commonly referred to as?
a) Debt financing
b) Equity financing
c) Venture capital financing
d) Angel financing
Answer: b) Equity financing
In macroeconomics, what does the "Laffer Curve" illustrate?
a) The relationship between tax rates and tax revenue
b) The impact of inflation on interest rates
c) The relationship between savings and investment
d) The effects of trade barriers on international commerce
Answer: a) The relationship between tax rates and tax revenue
In microeconomics, what is the term for a market structure characterized by many firms selling differentiated products and having some control over the price?
a) Oligopoly
b) Monopoly
c) Perfect competition
d) Monopolistic competition
Answer: d) Monopolistic competition
Which economist is known for his influential book "The Wealth of Nations," advocating for the principles of capitalism?
a) John Maynard Keynes
b) Karl Marx
c) Adam Smith
d) Friedrich Hayek
Answer: c) Adam Smith
In the context of international finance, what does the term "currency swap" refer to?
a) A temporary agreement between central banks to exchange currencies for a specific period
b) The practice of converting one currency into another for international trade
c) A government policy to stabilize its exchange rate
d) The process of transferring funds between international banks
Answer: a) A temporary agreement between central banks to exchange currencies for a specific period
What financial term describes the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power over time?
a) Interest rate
b) Inflation rate
c) Exchange rate
d) Dividend yield
Answer: b) Inflation rate
What is the term for a monetary policy tool in which a central bank purchases long-term securities to lower long-term interest rates and stimulate economic activity?
a) Quantitative easing
b) Open market operations
c) Discount rate adjustment
d) Reserve requirement change
Answer: a) Quantitative easing
What is the economic concept that suggests that individuals and firms make decisions based on comparing the marginal benefits and marginal costs of each option?
a) Rational choice theory
b) Game theory
c) Behavioral economics
d) Utility maximization
Answer: a) Rational choice theory