PASSED QUIZ

Question 1

study of monetary interactions

Answer 1

INTERNATIONAL FINANCE

Question 2

US DOLLAR

Answer 2

international money
international transaction
value of worldwide standard
safe currency

Question 3

THREE MAJOR DIMENSIONS OF INTERNATIONAL FINANCE APART FROM DOMESTIC FINANCE

Answer 3

Foreign Exchange and Political Risk
Market Imperfections
Expanded Opportunity Set

Question 4

it is risk of loss (gain) of unforeseen government action

Answer 4

POLITICAL RISK

Question 5

risk of investment’s returns of could suffer of result political changes

Answer 5

POLITICAL RISK

Question 6

world market is highly imperfect

Answer 6

MARKET IMPERFECTIONS

Question 7

MARKET IMPERFECTIONS

Answer 7

does not meet the rigorous standard

Question 8

volatility of foreign exchange risk that most serious international financial problem

Answer 8

FOREIGN EXCHANGE RISK

Question 9

benefited from expanded opportunities available globally

locate production in any country

Answer 9

EXPANDED OPPORTUNITY SET

Question 10

COMPANIES ARE MOTIVATED TO INVEST CAPITAL IN ABROAD

Answer 10

Efficiently produce product in foreign market than that domestically

Obtain the essential raw material needed for production

Question 11

it is growing interdependence
reduce operating costs
buy raw materials cheaply
reduction of tariffs
gain access to million of new customers

Answer 11

GLOBALIZATION

Question 12

leads to greater interaction

Answer 12

SOCIALLY

Question 13

exchange of ideas, culture, and artistic expression

Answer 13

CULTURALLY

Question 14

how international law is created

Answer 14

LEGALLY

Question 15

facilities and other assets atleast in one country

Answer 15

MULTINATIONAL CORPORATION

Question 16

offices and facilities in different countries

Answer 16

MULTINATIONAL COMPANY

Question 17

agreement for tariffs and trade to eliminate the barriers

Answer 17

GENERAL AGREEMENT OF TARIFFS AND TRADE (GATT)

Question 18

transaction of buying and selling between international market

Answer 18

INTERNATIONAL FLOW OF FUNDS

Question 19

monitor all international money transaction

Answer 19

BALANCE OF PAYMENT

Question 20

BALANCE OF PAYMENT

Answer 20

record all payments and transactions

Question 21

TWO COMPONENTS OF BALANCE OF PAYMENT

Answer 21

CURRENT ACCOUNT

CAPITAL ACCOUNT

Question 22

short term transaction

Answer 22

CURRENT ACCOUNT

Question 23

CAPITAL ACCOUNT

Answer 23

sum of total inflow and outflow

Question 24

export transaction are more than import

Answer 24

SURPLUS BALANCE OF PAYMENT

Question 25

DEFICIT BALANCE OF PAYMENT

Answer 25

export transaction are less than import

Question 26

imports more goods and borrow from other country to pay the import

Answer 26

BALANCE OF PAYMENT DEFICIT

Question 27

short-term of Balance of Payment Deficit

Answer 27

fuel economic growth

Question 28

long-term of Balance of Payment Deficit

Answer 28

debt to pay for consumption

Question 29

exports more and provides enough capital to pay all domestic production

Answer 29

BALANCE OF PAYMENT SURPLUS

Question 30

short- term of Balance of Payment Surplus

Answer 30

surplus boost economic growth

Question 31

long-term of Balance of Payment Surplus

Answer 31

dependent on export to driven growth

Question 32

FACTORS INFLUENCING INTERNATIONAL FLOW OF FUNDS

Answer 32

INFLATION NATIONAL INCOME GOVERNMENT POLICIES FOR A COUNTRY SUBSIDIES PROVIDED FOR TRADERS RESTRICTION ON IMPORT RESTRICTION ON PIRACY IMPACT OF ECHANGE RATES OF FOREIGN CURRENCY

Question 33

increase inflation rate is decreasing the value of current account

Answer 33

INFLATION

Question 33

impact the most trade between two countries at international level

Answer 33

GOVERNMENT POLICIES OF A COUNTRY

Question 33

GDP income increase = rise in per capita income of people = increase spending

Answer 33

NATIONAL INCOME

Question 34

rate subsidies decide the volume of export

Answer 34

SUBSIDES PROVIDED FOR TRADERS

Question 35

government heavy duty on import that will help the country

Answer 35

RESTRICTION ON IMPORT

Question 36

government affect international trade flows

Answer 36

RESTRICTION ON PIRACY

Question 37

fluctuate

Answer 37

IMPACT OF EXHANGE RATE OF FOREIGN CURRENCY

Question 38

ADVANTAGES OF INTERNATIONAL FLOW OF FUNDS

Answer 38

INCREASE AGGREGATE DEMAND INCREASE PPRODUCTION CAPACITY TECHNOLOGICAL ADVANCEMENT THE SURPLUS ON THE FINANCIAL ACCOUNT OF BALANCE OF PAYMENT EASY FINANCES THE INFLOW OF FOREIGN CURRENCY

Question 39

DISADVANTAGES OF INTERNATIONAL FLOW OF FUNDS

Answer 39

THE LOSS TO DOMESTIC PLAYER TAX EVASION DESTROYING REAL ESTATE MARKET MONEY LAUNDERING