BUSI 303 Quiz 3

BUSI 303 Quiz 3

BUSI 303 Quiz 3 Liberty University

Set 1

1. In 1989, Mexican President Carlos Salinas invited United States President Bill Clinton to organize a trade agreement, CUSFTA, that would increase investment and decrease tariffs between the U.S., Mexico, and Canada.
2. Is responsible for monetary policy for the Euro, the official currency of the Eurozone, and sets interest rates across the participating members.
3. Is comprised of the following nations: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
4. Was established in 1960 as an economic counterpart to the North Atlantic Treaty
5. Organization (NATO). The objective of the organization is increasing economic welfare through the world by covering issues associated with social work and economic efforts within participating governments and nonparticipating governments.
6. Which of the following countries is NOT a founding member of APEC?
7. Established with the Treaty of Chaguaramas in 1973 with the following affiliated
8. Primary guardians of national currencies and usually responsible for setting monetary policy and exchange rate policy.
9. Generally the market makers on the foreign exchange
10. In the United States, the is responsible for regulating the growth of the economy, which is accomplished by the increase or decrease of money supply.
11. Compared to a nonparticipating nation, a participating nation in a regional trading bloc benefits from the established trade agreement, as a result of greater bargaining power.
12. To become a member state, a prospective country needs to fulfill political and economic preconditions known as the Copenhagen Criteria. This requires a democratic and secular government, an independent judiciary, and corresponding personal freedoms.
13. The law of volatility states that similar goods or commodities in different countries should remain at the same price after conversion of currencies according to current exchange rates.
14. Agreement establishes an investor-state dispute settlement mechanism and lowers both tariff and non-tariff barriers to trade; the United States formally withdrew in 2017.
15. Some illustrative negotiations issues include the rights of citizens, free movement of labor, continuation contribution to the EU budget, Trade, settlement of current debts to the EU, & the Irish border
16. The difference between a spot rate and a forward rate is termed the
17. The reasons that global financial markets are important to lenders.
18. The SACU was established as a common market with the goals to maintain the free interchange of goods between signatory nations and provide for a common external tariff and a common excise tariff?
19. Includes Burma, Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam. The goal is to attain economic, social, and cultural aims through joint endeavors, collaboration, and assistance. They show mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations.
20. The GCC operates as a common market, granting national treatment to all GCC firms and citizens in any other GCC country, as well as removing all barriers to cross country investment and services trade.
21. The OTC Market has gradually evolved into the largest, fastest, and most flexible currency trading market in the world.
22. Match the following:

Set 2

1. In the United States, the Federal Reserve Bank is responsible for regulating the growth of the economy, which is accomplished by the increase or decrease of money supply.
2. The law of PPP states that similar goods or commodities in different countries should remain at the same price after conversion of currencies according to current exchange rates.
3. The goals of the The Lomé Convention 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.
4. The 1922 Fordney‐McCumber Act raised U.S. tariffs to historically high levels.
5. Which of the following is not an industrial product exchanged within the global financial market?
6. The membership requirements for the European Monetary Union (EMU) are based on the 5 convergent criterion: Price Stability, Sound Public Finance, Sustainable Public Finances Commodity Durability Convergence and Exchange Rate Stability.
7. Which of the following is true concerning the IMF?
8. The OTC Market has gradually evolved into the largest, fastest, and most flexible currency trading market in the world.
9. With 11 beginning members in 1952, the European Union has now grown to a total of 28 members.
10. The ________ of the world have become highly interdependent because of improvements in ________ and transportation technologies and the lowering of barriers to trade.
11. Select the two reasons that global financial markets are important to borrowers
12. ANCOM was established in 1990 with the Agreement of Cartagena, or Andean Pact, between Bolivia, Peru, Ecuador, and Chile.
13. Trading blocs provide protection from global competitiveness.
14. A Common Market includes all of the elements of a Customs Union and freedom of movement of the four factors of production: goods, services, capital, and labor.
15. A pegged exchange rate is an exchange rate that is freely determined by the interaction of supply and demand.
16. In 1979, Mexican President Carlos Salinas invited United States President Bill Clinton to organize a trade agreement that would increase investment and decrease tariffs between the U.S. and Mexico.
17. The majority of transactions on the FX include operations with the Euro, where one party sells or buys dollars using other world currencies.
18. All of the following are EU Member countries except
19. The most prominent major financial markets are located.
20. Approximately 50 percent of all world trade is conducted through regional trade agreements.
21. Match the following

Economic Union

Regional Economic Integration

Custom Union

ECJ (Q)

Customs Delays

Common Market

European Central Bank

Council of Europe

Political Union

OPEC

International Monetary Fund (IMF)

Speculation

FX swap

Futures positions

Currency Board

Forward Exchange

Direct Quotation

Indirect Quotation

Variable interest rate loan

Forward discount