International Finance
Which of the following is an example of a trade barrier that restricts international trade?
a) Tariff
b) Free trade agreement
c) Multinational corporation
d) Trade deficit
Answer:
a) Tariff
What is the primary purpose of a Roth IRA (Individual Retirement Account) in the United States?
a) To provide health insurance
b) To offer short-term savings
c) To facilitate tax-free withdrawals for education expenses
d) To save for retirement through tax-free distributions
Answer: d) To save for retirement through tax-free distributions
What is the term for the measure of the average prices of goods and services consumed by urban households in a country?
a) Gross Domestic Product (GDP)
b) Consumer Price Index (CPI)
c) Producer Price Index (PPI)
d) Inflation rate
Answer: b) Consumer Price Index (CPI)
What is the term for a situation where the quantity supplied exceeds the quantity demanded in a market, leading to a surplus?
a) Equilibrium
b) Shortage
c) Price ceiling
d) Excess supply
Answer: d) Excess supply
What is more valuable 1 Bitcoin or 10000$?
Answer 1 Bitcoin
Value of Bitcoin now is around 25000$
What is the term for a situation where a country's imports exceed its exports, resulting in a negative balance of trade?
a) Trade surplus
b) Trade deficit
c) Trade embargo
d) Trade equilibrium
Answer: b) Trade deficit
In the context of investment, what does the term "liquidity" refer to?
a) The ability to easily convert an asset into cash without loss of value
b) The degree of risk associated with an investment
c) The total amount of assets in a portfolio
d) The annual rate of return on an investment
Answer: a) The ability to easily convert an asset into cash without loss of value
In macroeconomics, what is the term for the total income earned by households and businesses within a country's borders in a given year?
a) Gross National Product (GNP)
b) Gross Domestic Product (GDP)
c) Disposable income
d) Fiscal surplus
Answer: b) Gross Domestic Product (GDP)
In microeconomics, what is the term for a cost that does not vary with the level of production and remains constant?
a) Fixed cost
b) Variable cost
c) Marginal cost
d) Average cost
Answer: a) Fixed cost
What financial term might be summarized as "When investing, don't put all your camels in one caravan"?
a) Diversification
b) Capital Gains
c) Risk Tolerance
d) Nominal Interest Rate
Answer: a) Diversification
Which international financial institution provides long-term loans and grants for development projects in developing countries?
a) International Monetary Fund (IMF)
b) World Bank
c) World Trade Organization (WTO)
d) United Nations (UN)
Answer: b) World Bank
Which financial term describes the total return on an investment, including both capital gains and income, expressed as a percentage of the original investment?
a) Interest rate
b) Dividend yield
c) Rate of return
d) Equity ratio
Answer: c) Rate of return
What is the name of the theory that suggests that an increase in government spending can lead to an even larger increase in overall economic activity and income?
a) Laffer Curve theory
b) Trickle-down economics
c) Keynesian economics
d) Monetarism
Answer: c) Keynesian economics
What is the term for a legal restriction on the maximum price at which a good or service can be sold, often used to protect consumers?
a) Price ceiling
b) Price floor
c) Market equilibrium
d) Monopoly pricing
Answer: a) Price ceiling
What country is expected to have the highest GDP by 2050?
a) USA
b) India
c) China
d) Germany
Answer: c) China
What is the primary function of the Bank for International Settlements (BIS) in international finance?
a) Issuing international currency
b) Regulating global financial markets
c) Promoting international trade agreements
d) Serving as a bank for central banks
Answer: d) Serving as a bank for central banks
What does the term "compound interest" mean in finance?
a) Interest is calculated only on the initial principal
b) Interest calculated on both the initial principal and any accumulated interest
c) Interest that decreases over time
d) Interest earned on a savings account
Answer: b) Interest calculated on both the initial principal and any accumulated interest
In macroeconomics, what does the term "stagflation" refer to?
a) A period of high inflation and high unemployment
b) A stable and growing economy
c) A decline in overall price levels
d) Rapid economic growth without inflation
Answer: a) A period of high inflation and high unemployment
In microeconomics, what concept describes the tendency for consumers to purchase more of a good as its price falls and less as its price rises?
a) Subsidy effect
b) Law of supply
c) Law of demand
d) Equilibrium effect
Answer: c) Law of demand
In capitalism, the price of a product is primarily determined by:
a) The government
b) The seller's production costs
c) Supply and demand in the market
d) Labor unions
Answer: c) Supply and demand in the market
In international finance, what does the term "capital controls" refer to?
a) Regulations that limit the amount of foreign currency individuals can hold
b) Restrictions imposed by governments on the flow of funds in and out of a country
c) A system of international banking standards and regulations
d) The exchange rate regime where a currency is pegged to another currency
Answer: b) Restrictions imposed by governments on the flow of funds in and out of a country
In finance, what is the term for a security that represents ownership in a company and gives the holder the right to vote on company matters?
a) Bond
b) Preferred stock
c) Common stock
d) Mutual fund
Answer: c) Common stock
Which economic concept describes the increase in the purchasing power of money when the general price level falls?
a) Hyperinflation
b) Real interest rate
c) Disinflation
d) Deflationary spiral
Answer: b) Real interest rate
What is the term for the total satisfaction or benefit that a consumer derives from consuming a certain quantity of a good or service?
a) Utility
b) Elasticity
c) Opportunity cost
d) Monopolistic competition
Answer: a) Utility