1143 Definitions

Question 1

selling a good below cost in a foreign country

Answer 1

dumping

Question 2

free-trade association among nations

Answer 2

common market

Question 3

international organization dedicated to eliminating trade barriers

Answer 3

WTO

Question 4

note replacing national money in EMU nations

Answer 4

euro

Question 5

charged as low a tariff on exports as any other nation

Answer 5

most-favored nation

Question 6

complete restrictions on imports or exports

Answer 6

embargoes

Question 7

limit the quantity of imported goods

Answer 7

Quotas

Question 8

taxes placed on traded goods

Answer 8

Tariffs

Question 9

usually established for political reasons

Answer 9

Embargoes

Question 10

encourages customers to purchase domestic goods

Answer 10

nationalistic appeal

Question 11

WTO

Answer 11

World Trade Organization

Question 12

a European free-trade organization that removed all trade barriers among its member nations in 1992

Answer 12

European Union

Question 13

as long as the relative opportunity costs of producing goods differ among nations, there are political gains from trade, even in one nation has an absolute advantage in the production of everything

Answer 13

The principle of comparative advantage

Question 14

the most common trade restrictions

Answer 14

Tariffs

Question 15

procedural rules that limit imports

Answer 15

regulatory trade restrictions

Question 16

difference between the value of a nation’s imports and the value of its exports

Answer 16

balance of trade

Question 17

imports > exports

Answer 17

trade deficit

Question 18

exports > imports

Answer 18

trade surplus

Question 19

ability to produce goods more inexpensively than other nations

Answer 19

competitiveness

Question 20

growth based on a trade surplus

Answer 20

export-led growth

Question 21

price of one currency in terms of another

Answer 21

exchange rate

Question 22

firm with global operations

Answer 22

multinational corporation

Question 23

record of all transactions between a nation’s residents and those of all foreign nations

Answer 23

balance of payments

Question 24

primary short-run determinant of exchange rates

Answer 24

interest rates

Question 25

fixed in relation to the price of a precious metal

Answer 25

gold standard

Question 26

based entirely on the currency market

Answer 26

flexible exchange rate

Question 27

always established by the government

Answer 27

fixed exchange rate

Question 28

sometimes controlled by the government and sometimes allowed to fluctuate

Answer 28

partially flexible exchange rate

Question 29

was established by the Bretton Woods system

Answer 29

fixed exchange rate

Question 30

the only force used to enforce international rules

Answer 30

Moral tradition

Question 31

is often a major influence on the economy of a small nation

Answer 31

global, or multinational, corporation

Question 32

forgoing present consumption to enable future consumption

Answer 32

saving

Question 33

business whose primary activities are buying, selling, and holding financial assets

Answer 33

financial institution

Question 34

any financial asset that serves the function of money

Answer 34

money

Question 35

insurer of bank deposits

Answer 35

FDIC

Question 36

bond that involves a high risk

Answer 36

junk bond

Question 37

market of declining prices

Answer 37

bear market

Question 38

market of rising prices

Answer 38

bull market

Question 39

periodic payment made to stockholders

Answer 39

dividend

Question 40

increase in the value of a stock

Answer 40

capital gain

Question 41

short-term promissory note issued by a large corporation

Answer 41

commercial paper

Question 42

government IOU with a maturity of less than one year

Answer 42

U.S. Treasury bill

Question 43

less expensive, more risky stock

Answer 43

common stock

Question 44

stock that pays a fixed dividend rate

Answer 44

preferred stock

Question 45

root of all evil

Answer 45

love of money

Question 46

issues money in the U.S.

Answer 46

Federal Reserve Bank

Question 47

the broadest definition of money and includes all short-term financial assets

Answer 47

L

Question 48

the narrowest definition of money and includes only traveler's checks, cash, and checking account balances

Answer 48

M1

Question 49

A credit card is an ______ to the bank that issues it, but is a __________ to its holder.

Answer 49

asset | liability

Question 50

hold checking and savings account deposits and include banks, credit unions, and S&Ls

Answer 50

Depository institutions

Question 51

Contractual intermediaries

Answer 51

Insurance companies and pension funds

Question 52

have no guaranteed value and no maturity date

Answer 52

stock