This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Economics – Quiz 45 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Economics Quiz 45 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The value of exchange rate is determined by the demand and supply of currency is refer to the ..... exchange rate system. A) Variable. B) Fixed. Show Answer Correct Answer: A) Variable. 2. A Flexible exchange rate is also called as ..... A) Floating. B) Flying. C) Flexing. D) None of above. Show Answer Correct Answer: A) Floating. 3. The supply curve will shift to the right if ..... A) Number of tourist increase in the country. B) Foreigner buy import goods. C) Foreigner did not make investment in the country. D) None of above. Show Answer Correct Answer: A) Number of tourist increase in the country. 4. If a French firm buys computers from the United States, there would be an increase in which of the following in the foreign exchange market? A) Demand for United States dollars and supply of euros. B) Demand for both United States dollars and euros. C) Supply of United States dollars and demand for euros. D) Supply of both United States dollars and euros. E) International value of the euro relative to the United States dollar. Show Answer Correct Answer: A) Demand for United States dollars and supply of euros. 5. Which of followings is not the subject matter of international finance? A) The foreign exchange markets. B) The balance of payments. C) Basics and gains from trade. D) Policies to adjust balance of payment disequilibria. Show Answer Correct Answer: C) Basics and gains from trade. 6. The relationship between the value of a country's exports and the value of its imports. A) Trade Deficit. B) Trade Surplus. C) Balance of Trade. D) Balance of Payments. Show Answer Correct Answer: C) Balance of Trade. 7. The components of Balance of payment account are ..... A) Capital account. B) Current account. C) Both a and b. D) None of the above. Show Answer Correct Answer: C) Both a and b. 8. Trade agreement between a group of neighboring countries that promote trade with each other by lowering trade barriers. A) Trade group. B) Trading bloc. C) Trade association. D) Countries of trade. Show Answer Correct Answer: B) Trading bloc. 9. Internal trade have a first hand knowledge of the demand and supply position A) True. B) False. Show Answer Correct Answer: A) True. 10. Which country is not one of Australia's top 5 trading partners for exports? A) UK. B) New Zealand. C) China. D) Japan. Show Answer Correct Answer: B) New Zealand. 11. The current account shows ..... A) International movement of goods and services. B) International movement of capital. C) Foreign exchange market. D) International movement of investments. Show Answer Correct Answer: A) International movement of goods and services. 12. What happens when a nation's currency depreciates? A) Its products become more expensive to other nations. B) Its products become cheaper to other nations and exports may increase. C) Nothing. D) It halts all trade. Show Answer Correct Answer: B) Its products become cheaper to other nations and exports may increase. 13. Trade bloc:Myanmar, Thailand, Cambodia, Singapore, Vietnam, Indonesia A) NAFTA. B) ASEAN. C) European Union. D) None of above. Show Answer Correct Answer: B) ASEAN. 14. Goods or services produced in another country and purchased by the home country. A) Exports. B) Imports. C) Transports. D) Outgoers. Show Answer Correct Answer: B) Imports. 15. Taxes on imported goods, to protect domestic goods. A) Quota. B) Dumping. C) Import. D) Protective Tariff. Show Answer Correct Answer: D) Protective Tariff. 16. International trade theory refers to: A) The microeconomic aspects of international trade. B) The macroeconomic aspects of international trade. C) Open economy macroeconomics of international finance. D) All of above. Show Answer Correct Answer: A) The microeconomic aspects of international trade. 17. All of these restrict international trade EXCEPT A) Quotas. B) Subsidies. C) Embargoes. D) Trade deficits. Show Answer Correct Answer: D) Trade deficits. 18. According to the ..... argument for protection, tariffs can shield new industries from import competition until they have grown strong and efficient enough to withstand the competition by foreign producers. A) Scientific tariff argument. B) Infant industry argument. C) Beggar they neighbor argument. D) Foreign dumping argument. Show Answer Correct Answer: B) Infant industry argument. 19. An agreement that will eliminate all tariffs and other trade barriers is an example of a A) Free Trade area. B) Common market. C) Customs union. D) Monetary union. Show Answer Correct Answer: A) Free Trade area. 20. Refers to when one individual, firm, or country has the lowest opportunity cost for producing the good or service. A) Absolute Advantage. B) Comparative Advantage. C) Trade off. D) Balance of trade. Show Answer Correct Answer: B) Comparative Advantage. ← PreviousNext →Related QuizzesEconomics QuizzesInternational Economics Quiz 1International Economics Quiz 2International Economics Quiz 3International Economics Quiz 4International Economics Quiz 5International Economics Quiz 6International Economics Quiz 7International Economics Quiz 8International Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books