Liberty University BUSI 604 International Test

Liberty University BUSI 604 International TestQuestion 12 out of 2 pointsThe major difference between the currency futures market and the OTC market is that futures settle gains and losses on a daily basis through the margin mechanism.Selected Answer:• Question 22 out of 2 pointsMost currencies are quoted in relation to the British Sterling.Selected Answer:• Question 32 out of 2 points(___________) is considered a sign of economic recovery and stabilization but makes the currency of a country more expensive compared to other currencies, having a direct inverse effect on exports and imports.Selected Answer:• Question 42 out of 2 pointsGlobal financial markets are important to borrowers for two reasons such as (1) to expand the supply of money, and (2) reduce the cost of money.Selected Answer:• Question 52 out of 2 pointsActual currencies change hands in FX Markets transactions and can also be completed electronically.Selected Answer:• Question 62 out of 2 pointsIn ideal functioning markets, speculation and (_______) assist in the reduction of unavoidable risks associated with uncertainties, such as unemployment, catastrophic losses, and diminished business revenue.Selected Answer• Question 72 out of 2 pointsPurchasing Power Parity has an impact on exchange rates and indicates the current level of inflation of one currency against another.Selected Answer:• Question 82 out of 2 pointsThe (___________) monitors the various companies and organizations that are quoted on the security exchange and make sure they meet the requirements for being listed.Selected Answer:• Question 92 out of 2 points(__________) essentially decreases a consumer’s purchasing power by making goods and services more expensive.Selected Answer:• Question 102 out of 2 pointsIf a currency price is expected to rise in the future, a buyer pays a higher price, which is considered a forward discount.Selected Answer:• Question 112 out of 2 pointsA large percentage of all FX market transactions are spot transactions.Selected Answer:• Question 122 out of 2 pointsThe FX swap of currency amounts is normally variable.Selected Answer:• Question 132 out of 2 pointsThe most important issue in understanding the effects of exchange rates on business is its (________).Selected Answer:• Question 142 out of 2 pointsGlobal financial markets are important to lenders for two major reasons: (1) expanding (________) and (2) reducing (________).Selected Answer:• Question 150 out of 2 pointsIn the U.S., the Security Exchange Commission monitors activities of exchange markets and OTC markets.Selected Answer:• Question 162 out of 2 pointsFixed exchange rates, also known as pegged exchange rates, occur when a government or central bank ties the official exchange rate to another country’s currency or the price of gold.Selected Answer:• Question 170 out of 2 pointsA currency board is a government’s bank and is capable of bailing out a failing bank.Selected Answer:• Question 182 out of 2 pointsOTC participants trade on a physical trading floor.Selected Answer:• Question 190 out of 2 points(________) gives every state the right to lead its existence free from external interference.Selected Answer:• Question 202 out of 2 pointsThe (______) is guided by the belief in the importance of building an integrated petroleum industry as a cornerstone for future economic integration amongst Arab countries.Selected Answer:• Question 210 out of 2 pointsAgreements between participating nations are managed and promoted through (__________).Selected Answer:• Question 222 out of 2 pointsThe Council of Europe judges claims by member states that the European Commission has exceeded its authority.Selected Answer:• Question 232 out of 2 points(_________) is the largest agreement in the world (approximately 1.56 billion people).Selected Answer:• Question 242 out of 2 pointsThe Economic Union requires that member countries harmonize their tax, monetary and fiscal policies, create a common currency, and concede a certain amount of sovereignty to the supranational organization to which they belong.Selected Answer:• Question 250 out of 2 pointsThe objective of the OECD is increasing economic welfare through the world by covering issues associated with social work and economic efforts within participating governments and nonparticipating governments.Selected Answer:• Question 262 out of 2 pointsThe goals of the (_________) are threefold: (1) the reduction and eventual eradication of poverty in signatory island and land-locked nations, (2) sustainable economic development in signatory island and land-locked nations, and (3) the gradual integration of signatory countries into the world economy.Selected Answer:• Question 272 out of 2 pointsThe intent to form a trading bloc may range from the potential of trade creation to the desire for economic protectionism.Selected Answer:• Question 280 out of 2 pointsFreedom and the absence of random violence is not one of the five basic goals espoused by national governments.Selected Answer:• Question 292 out of 2 pointsNon-tariff barriers refer to laws and regulations affecting trade; these include barriers that governments use to ensure accountability and quality.Selected Answer:• Question 302 out of 2 pointsHistory has displayed how conflicts can affect the supply and demand of oil resources, resulting in (______) fluctuation.Selected Answer:• Question 312 out of 2 pointsNon-tariff barriers involve financial methods (e.g., taxes on imports) of protecting national industries from competition by foreign corporations.Selected Answer:• Question 322 out of 2 pointsTo become a member state in the ANCOM, a prospective country needs to fulfill political and economic preconditions known as the Copenhagen Criteria.Selected Answer:• Question 332 out of 2 pointsThe stages of regional economic integration are as follows: Free Trade Agreement, (__________), Common Market, Economic Union, and (_________).Selected Answer:• Question 342 out of 2 pointsSouth America is one of the largest trading blocs in the world.Selected Answer:• Question 350 out of 2 pointsIncreasing attention is being paid to the rapidly growing economies of (_______) and (_________), as they evolve from primarily agricultural dependence into industrial giants with regional superpower status.Selected Answer:• Question 362 out of 2 pointsThe (______) operates as a common market, granting national treatment to all (___) firms and citizens in any other (____) country, as well as removing all barriers to cross country investment and services trade.Selected Answer:• Question 370 out of 2 pointsThe (__________) examines and decides on claims brought by the European Commission against member states for noncompliance with EU laws or directives.Selected Answer:• Question 382 out of 2 pointsIn a (___________), one client company contracts another company to build and deliver a ready to operate industrial plant or infrastructure facility, such as a power plant, a highway or a port. In such cases, the client can be a government agency.Selected Answer:• Question 392 out of 2 pointsOne advantage of a management contract is that the host nation provides the funds for any infrastructure associated with the project management.Selected Answer:• Question 400 out of 2 pointsA company can keep itself flexible by following a (____________) which allows the firm to switch partners or exit the market altogether if the need arises.Selected Answer:• Question 412 out of 2 pointsAs one of the primary government facilitators for small businesses, the (_____) agency will provide corporate services, which include financing, trade counseling, and commodity brokerage.Selected Answer:• Question 422 out of 2 pointsA (__________) is a voluntary arrangement between companies involving exchange sharing, co-development of products, technologies, or services.Selected Answer:• Question 432 out of 2 pointsSmall businesses cannot compete in the global economy.Selected Answer:• Question 442 out of 2 points(________) entry is optimal for businesses that may not have enough financial capital to initiate operations in a new market.Selected Answer:• Question 450 out of 2 pointsIn attractive markets, short-term profitability for a firm is expected to be provided through these investment modes.Selected Answer:• Questio