Liberty University BUSI 303 quiz 3 complete solutions correct answers A+ work

Liberty University BUSI 303 quiz 3 complete solutions correct answers A+ work

More than 8 different versions.

Two most popular products traded on the security exchange markets are stocks and bonds

The OTC Market has gradually evolved into the largest, fastest, and most flexible currency trading market in the world

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

Preferential Trade Areas are suitable in cases where economic structures in signatory nations complement one another and trade in products that do not compete with each other

Which of the following is not an industrial product exchanged within the global financial market

OPEC was founded in 1960 in Baghdad

Approximately 50 percent of all world trade is conducted through regional trade agreements.

Regional integration is the process whereby countries remove barriers to trade between themselves, but each country determines its own barriers against nonmembers.

Currency arbitrage means buying a currency in one market at a low price and reselling moments later in another market at a higher price.

A study conducted by the OECD reported the students who had the highest level of reading proficiency include

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

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

Which of the following countries is NOT a founding member of APEC

Mercosur was established in 1991 with the intent of increasing the competitiveness of its five member nations’ economies through the use of research on economic development. Full-member nations include Argentina, Brazil, Paraguay, Uruguay, and Venezuela

Which of the following is true concerning the IMF

The end result of the global competition is _________ products and ________ for consumers

The Foreign Exchange Market is a physical and virtual institutionalized structure whereby currency of one country is exchanged to currency of another country

The ________ of the world have become highly interdependent because of improvements in ________ and transportation technologies and the lowering of barriers to trade

·         Question 1

3.2 out of 3.2 points

Which of the following uses the FX market to facilitate international business activities

·         Question 2

3.2 out of 3.2 points

A floating exchange rate allows rates to freely float and change according to market supply and demand; in addition, stable exchange rates are a sign of a struggling economy or an economy in crisis.

·         Question 3

3.2 out of 3.2 points

Trading blocs are committed to officiate and develop trade activities for signatory nations.

·         Question 4

3.2 out of 3.2 points

Preferential Trade Areas

·         Question 5

3.2 out of 3.2 points

Trading blocs are a notable feature of the [International] economy, enabling [scope] and [scale] advantages.

·         Question 6

3.2 out of 3.2 points

Common Market

·         Question 7

3.2 out of 3.2 points

Free Trade Area

·         Question 8

3.2 out of 3.2 points

Which of the following is generally the market makers on the foreign exchange

·         Question 9

3.2 out of 3.2 points

Select the reasons that global financial markets are important to lenders (select more than one answer).

·         Question 10

3.2 out of 3.2 points

Which of the following is the primary guardians of national currencies and usually responsible for setting

3.2 out of 3.2 points

Which of the following is the primary guardians of national currencies and usually responsible for setting

Answer

Selected Answer:

3.2 out of 3.2 points

Trading blocs are a notable feature of the [International] economy, enabling [scope] and [scale] advantages.

3.2 out of 3.2 points

Free Trade Area

Answer

3.2 out of 3.2 points

A floating exchange rate allows rates to freely float and change according to market supply and demand; in addition, stable exchange rates are a sign of a struggling economy or an economy in crisis.

Answer

3.2 out of 3.2 points

Common Market

Answer

3.2 out of 3.2 points

Trading blocs are committed to and help integrate economic prosperity and stability among signatory nations.

Answer

3.2 out of 3.2 points

Preferential Trade Areas

Answer

3.2 out of 3.2 points

Which of the following is generally the market makers on the foreign exchange

Answer

3.2 out of 3.2 points

Select the reasons that global financial markets are important to lenders (select more than one answer).

Answer

3.2 out of 3.2 points

Which of the following uses the FX market to facilitate international business activities

Answer

Match the question to the best possible answer.

Answer

Question

Selected Match

 J. 

Maintain order in the global monetary system

 C. 

European; value of domestic currency in foreign currency

 B. 

American; value a foreign currency in domestic currency

 D. 

Helps finance economic development in poor countries

 I. 

Simultaneous purchase and sale of a currency for different delivery dates

 F. 

Laws and regulations affecting trade; ensure accountability and quality

 T. 

Limits amount of imports into a country; makes domestic consumers buy domestic (Country/Region) products

 G. 

Monetary authority for a country/operates like a central bank

 E. 

Measures taken by a company to protect from the loss that may occur due to exchange rate or currency fluctuation

 A. 

Government financial assistance toward sectors of home economy; creates/provides influx of capital

 H. 

Reduce-remove tariff/non-tariff barriers; free movement of goods, services & factors of production among each other

 Q. 

Financial methods for protecting national industries from competition by foreign corporations

 L. 

Decentralized market of securities not listed on an exchange market

 D. 

Helps finance economic development in poor countries

 O. 

Currency of one country is exchanged to currency of another country

Which of the following is true concerning the IMF?

Participation is voluntary, but before qualifying to adopt the Euro, a country must participate in the _______as one of the convergence criteria for entry

In the United States, the ________ is responsible for regulating the growth of the economy

All of the following are EU Member countries except

Which of the following countries is NOT a founding member of APEC

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.

The most prominent major financial markets are located

All of the following are important EU institutions except

Preferential Trade Areas are suitable in cases where economic structures in signatory nations complement one another and trade in products that do not compete with each other

Two most popular products traded on the security exchange markets are stocks and bonds

CACM was established in 1960 between

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.

Mercosur was established in 1991 with the intent of increasing the competitiveness of its five member nations’ economies through the use of research on economic development. Full-member nations include Argentina, Brazil, Paraguay, Uruguay, and Venezuela

On August 15, 1971, President _______ announced that the U.S. would no longer redeem currency for gold

Currency arbitrage means buying a currency in one market at a low price and reselling moments later in another market at a higher price

The end result of the global competition is _________ products and ________ for consumers

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

Regional integration is the process whereby countries remove barriers to trade between themselves, but each country determines its own barriers against nonmembers

Which of the following countries is NOT a member of Mercosur

Which of the following is not an industrial product exchanged within the global financial market

Select the two reasons that global financial markets are important to borrowers

The 1922 Fordney­McCumber Act raised U.S. tariffs to historically high levels

Approximately 50 percent of all world trade is conducted through regional trade agreements

The Foreign Exchange Market is a physical and virtual institutionalized structure whereby currency of one country is exchanged to currency of another country

If a currency price is expected to rise in the future, what is the higher price a buyer pays?

Which of the following is not an industrial product exchanged within the global financial market?

Which of the following is NOT a problem ECOWAS faces?

Use the FX market to facilitate international business activities

The             Market has gradually evolved into the largest, fastest, and most flexible currency trading market in the world

Preferential Trade Areas are suitable in cases where economic structures in signatory nations complement one another and trade in products that do not compete with each other

Two most popular products traded on the security exchange markets are stocks and bonds.

The most prominent major financial markets are located

The majority of transactions on the FX include operations with the Euro, where one party sells or buys dollars using other world currencies

Which of the following is the order of the stages of regional economic integration?

All of the following are EU Member countries except

OPEC was founded in 1960 in Baghdad

The goals of the The Lomé Convention are threefold: (1) the reduction and eventual eradication of poverty in Signatory Island and land­locked nations, (2) sustainable economic development in Signatory Island and land­locked nations, and (3) the gradual integration of signatory countries into the world economy

Primary guardians of national currencies and usually responsible for setting monetary policy and exchange rate policy

The European Community established its Exchange Rate Mechanism (ERM) in 1979 and formed the initial steps for the creation of a single European currency

The participation in a trading bloc leads to the minimization of duplication, thin spreading of resources, and wasteful competition.

Mercosur was established in 1991 with the intent of increasing the competitiveness of its five member nations’ economies through the use of research on economic development. Full-member nations include Argentina, Brazil, Paraguay, Uruguay, and Venezuela

Regional integration is the process whereby countries remove barriers to trade between themselves, but each country determines its own barriers against nonmembers

ANCOM was established in 1990 with the Agreement of Cartagena, or Andean Pact, between Bolivia, Peru, Ecuador, and Chile

The ________ of the world have become highly interdependent because of improvements in ________ and transportation technologies and the lowering of barriers to trade.

CACM was established in 1960 between

Reasons that global financial markets are important to lenders

Approximately 50 percent of all world trade is conducted through regional trade agreements.

Currency arbitrage means buying a currency in one market at a low price and reselling moments later in another market at a higher price

With 11 beginning members in 1952, the European Union has now grown to a total of 28 members

Generally the market makers on the foreign exchange

The OTC Market has gradually evolved into the largest, fastest, and most flexible currency trading market in the world

Which of the following is true concerning the IMF?

Which of the following is generally the market makers on the foreign exchange

Trading blocs are committed to officiate and develop trade activities for signatory nations

Trading blocs are a notable feature of the [International] economy, enabling [scope] and [scale] advantages

Common Market

Free Trade Area

Which of the following is the primary guardians of national currencies and usually responsible for setting

Select the reasons that global financial markets are important to lenders (select more than one answer).

Preferential Trade Areas

Which of the following uses the FX market to facilitate international business activities

A floating exchange rate allows rates to freely float and change according to market supply and demand; in addition, stable exchange rates are a sign of a struggling economy or an economy in crisis

Have to be calculated when parties are conducting a trade in currencies other than USD

American: value of foreign currency in domestic currency

Deliberate downward adjustment in the official exchange rate

Simultaneous purchase and sale of a currency for different delivery dates

Helps finance economic development in poor countries

Currency of one country is excahnged to currency of an other country

Rate at which currency can be purchased in the future

Buying a commodity when its price is low and then reselling it after prices rise in order to make a profit

Maintain order in the global monetary system

Exchange rate of one currency in units of another currency immediately "on the spot"

Upward change in the currency's value

Represents shares of equity that a company releases for sale

Currencies that can easily be exchanged for other currencies

Formed the initial steps for the creation of a single European currency

Represent contracts for future delivery of a commodity

European: value of domestic currency in foreign currency

When a government/Central Bank ties the official exchange rate to another country's currency or price of gold

Meansures taken by a company to protect from the loss that may occur due to exchange rate or currency fluctuation

Monetary authority for a country/operates like a central bank

Decentralized market of securities not listed on an exchange market

South Korea, Hong Kong, Singapore, and Taiwan

Caribbean Community and Common Market

NAFTA, EU, MERCOSUR, ASEAN

Government financial assistance toward sectors of home economy; creates/provides influx of capital

U.S.-Chile Agreement of 2003

Peace, freedom, no violence, prosperity and economic progress, reduce poverty, democracy/healthy environment

Africa, Pacific, Caribbean Pact (ACP); Lome Convention

Financial methods for protecting national industries form competition by foreign corporations

Andean Common Market

European Union

Countries reduce-remove tariff/non-tariff barriers to trade between themselves; decide own barriers for non-members

Rarely fall neatly into one of the distinct stages

Promote economic prosperity and stability

Bureaucratic formalities; slow down imported product from entering the domestic market

Includes all of the elements of a Customs Union and freedom of movement of the four factors of production

Laws and regulations affecting trade: ensure accountability and quality

Group of nations in a geographic region engaged in economic integration; core element of REI

Mercosur

Of all world trade agreements are organized as trading blocs

Limit amount of importsinto a country; makes domestic consumers buy domestic (Country/Region) products

Name the two reasons that global financial markets are important to borrowers

Name the two reasons that global financial markets are important to lenders

What happened after the Gold Standard was discontinued in 1971?

Into what has the Foreign Exchange Market gradually evolved?

List 3 things the functions of the FX market allow

What is the difference between a spot rate and forward rate?

If a currency price is expected to rise in the future, what is the higher price a buyer pays?

Who are the primary guardians of national currencies and usually responsible for setting monetary policy and exchange rate policy?

Who are generally the market makers on the foreign echange?

Who uses the FX market to facilitate international business activites?

T/F: Two most popular products traded ont he security exchange markets are stocks and bonds

What is the Eurocurrency Market?

Describe a floating exchange rate system

What do stable exchange rates attract?

What are unstable exchange rates a sign of?

T/F: The Smoot-Hawley Act of June 1930 raised US tariffs to historically high levels

Explain how a managed float system differs from a floating exchange rate system

Explain what the Maastricht Treaty called for

List the five elements which are addressed int he process of integration

Name two reasons (intentions) for forming a trading bloc

Describe what trading blocs are notable feature of and why

T/F: Trading blocs provide protection from global competitiveness

List the five objectives behind the desire to protect the trade interest of participating regions

To what are trading blocs committed; what do they help integrate

List the two global environmental business agendas that trading blocs typicaly maintain for participating nations

limiting the amount of imports into the country so that domestic consumers buy products made by their countries in their region

establishing beaurocratic formalities that slow down the ability for the imported product from abroad to enter the domestic market

government financial assistance toward sectors of the home economy so that they have an influx of capital

allow preferential access to certain products from certain nations via the reduction of tariffs

Tariffs, quotas, and preferences on most (if not all) goods among members are removed, and each emember can determine its own trade policies with nonmembers

All barriers of trade among members are removed, and a common external trade policy is adopted

It includes all of the elements of a customs union, and freedom ofmovement of the four factors of production: goods, services capital and labor

an agreement wherein nations remove all barriers to trade and the movement of labor and capital and erect a common trade policy against nonmembers

determined by competition and drive toward profit

which of the following is not a problem ECOWAS faces?
a.attempting to unite the region
b.hunger
c.updating the current electrical grid to create more reliable energy
d. the strict use of passports as the means of travel between the countries

T/F regional integration is the process whereby countries remove barriers to trade between themselves, but each country determines its own barriers against nonmembers

18 of the European union nations have formed a single currency area called

T/F approximately 50 percent of all world trade is conducted through regional trade agreements

T/F 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

which of the following countries is NOT a founding member of APEC?
a. New Zealand
b. China
c. Singapore
d. Indonesia

T/F in 1979, Mexican President Carlos Salinas invited US President Bill Clinton to organize a trade agreement that would increase investment and decrease tariffs between the US and Mexico

T/F Mercosur was established in 1991 with the intent of increasing the competitiveness of its five member nations economies through the use of research on economic development. Full member nations include Argentina, Brazil, Paraguay, Uruguay, and Venezuela

T/F trading blocs provide protection from global competitiveness

T/F ANCOM was established in 1990 with the Agreement of Cartagena, or Andean Pact, between Bolivia, Peru, Ecuador, and Chile

T/F OPEC was founded in 1960 in Baghdad

CACM was established in 1960 between who?

Which of the following is not a member of the OECD?
Greenland
Korea
Israel
Greece

A study conducted by the OECD reported the students who had the highest level of reading proficiency include

T/F the participation in a trading bloc leads to the minimization of duplication, thin spreading resources and wasteful compeition

What is the order of the stages of regional economic integration?

T/F Preferential trade areas are suitable in cases where economic structures in signatory nations complement one another and trade in products that do not compete with each other

Which of the following countries is not a member of Mercosur?
a. Brazil
b. Argentina
c. Uruguay
d. Costa Rica

All of the following are important EU institutions except
a. Euro Zone
b. Council of the European Union
c. European Commission
d. European Court of Justice

On august 15, 1971, president

The OCT market has gradually evolved into the largest, fastest,

The _______ of the world have become highly interdependent

Currency arbitrage means buying a currency

Select the two reasons that global financial markets are

In the united states the federal reserve bank is responsible for regulating

Participation is voluntary

With 11 beginning members in 1952

the foreign exchange market is a physical and virtual

the 1922 Fordney

All of the following are EU Member countries except

The Role of the IMF is to supervise the exchange rate practices of member

Primary guardians of national currencies and usually responsible

Membership requirements for the European Monetary Union

Which of the following is not an industrial product

The law of PPP states that similar

Use the FX market to Facilitate international business activities

The most prominent major financial markets are located

the end result of the global competition is

Two most popular products traded on the security exchange markets are stocks and bonds

in the United States, the _________ is responsible for regulating the growth of the economy

A pegged exchange rate is an exchange rate that is freely

If a currency price is expected to rise in the future, what is the higher price a buyer pays?

The European Community is established its Exchange Rate Mechanism

Reasons that Global financial markets are important to lenders

Which of the following is NOT a typical

The Majority of transactions on the FX

Generally the market makers on the foreign exchange

The ________ Market has gradually evolved into the largest, fastest,

Which of the following is true concerning the IMF

Which of the following is NOT a problem ECOWAS faces

Regional integration is the process whereby countries remove

Eighteen of the European union nations

Approximately 50 percent of all world

The goals of the The Lome Convention are threefold:

A Common Market includes all of the elements of a custom union

Which of the following countries is NOT a founding member of APEC

In 1979 mexican president Carlos Salinasa invited the United States

Mercosur was established in 1991 with the intent of increasing the competitiveness of its five member nations

Trading blocs provide protection from global competitiveness

ANCOM was established in 1990

OPEC was founded in 1960

CACM was est in 1960 between

Which of the following is not a member of OECD

A study conducted by the OEDC reported the students

The Participation in a trading bloc leads to the minimization of duplication

Which of the following is the order of the stages of regional economic integration

Preferential Trade Areas are suitable in cases where economic

Which of the following countries is NOT a member of Mercosur

All of the following are important EU institutions except