International Trade & Finance Quiz

International Trade & Finance · Easy

20 questions · Unlimited attempts · Free online practice

Every day, billions of dollars' worth of goods, services, and investments move across international borders, connecting economies around the world. Understanding international trad...

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All 20 questions in this International Trade & Finance quiz

In international trade, a letter issued by a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount is called a:
- A. Bill of Lading
- B. Commercial Invoice
- C. Promissory Note
- D. Letter of Credit
What is 'Import'?
- A. Selling to another country
- B. A tax
- C. Buying from another country
- D. Local trade
What international economic institution was primarily established to provide long-term loans for the massive reconstruction of Europe after World War II?
- A. International Bank for Reconstruction and Development (IBRD)
- B. The International Monetary Fund (IMF)
- C. The Bank for International Settlements (BIS)
- D. The World Trade Organization (WTO)
When the total value of a nation's imported goods and services exceeds the total value of its exported goods and services, the nation is experiencing a:
- A. Trade surplus
- B. Budget deficit
- C. Capital outflow
- D. Trade deficit
The practice of taking advantage of a price difference between two or more markets, buying a currency in one market and simultaneously selling it in another for a risk-free profit, is called:
- A. Arbitrage
- B. Speculation
- C. Hedging
- D. Short selling
What is the currency of the European Union?
- A. Mark
- B. Pound
- C. Euro
- D. Franc
A state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, and precious metals is called a:
- A. Hedge Fund
- B. State Pension Trust
- C. National Mutual Fund
- D. Sovereign Wealth Fund
Trade exclusively between two specific nations, often governed by an exclusive treaty that reduces tariffs between them but not with other nations, is called:
- A. Bilateral trade
- B. Multilateral trade
- C. Plurilateral trade
- D. Unilateral trade
What is 'Appreciation'?
- A. Currency losing value
- B. Currency gaining value
- C. Inflation
- D. Tax hike
A total ban on trade and commercial activity with a particular country, usually enacted for severe political reasons, is known as:
- A. A sanction
- B. A boycott
- C. An embargo
- D. A blockade
What is 'Free Trade'?
- A. Trade without taxes or restrictions
- B. Trade of free goods
- C. Illegal trade
- D. Government controlled trade
When a country's government or central bank ties the official exchange rate of its currency to another country's currency or the price of gold, it is using a:
- A. Floating exchange rate
- B. Pegged (fixed) exchange rate
- C. Speculative exchange rate
- D. Spot exchange rate
Passive investments in foreign financial assets, such as simply buying stocks or bonds of a foreign company without gaining any managerial control, are classified as:
- A. Foreign portfolio investment (FPI)
- B. Greenfield investment
- C. Venture capitalism
- D. Sovereign wealth structuring
A monetary system where a country's currency or paper money has a value directly linked to a specific amount of gold is known as the:
- A. Fiat Standard
- B. Bimetallic Standard
- C. Gold Standard
- D. Reserve Peg
An exchange rate regime in which a currency's value is allowed to fluctuate in response to foreign exchange market mechanisms is known as a:
- A. Managed float
- B. Fixed peg
- C. Currency board
- D. Floating exchange rate
What is a 'Tariff'?
- A. A trade agreement
- B. A tax on imports
- C. A subsidy
- D. A price limit
What is 'Exchange Rate'?
- A. Tax rate
- B. Price of gold
- C. Interest rate
- D. Value of one currency in another
According to the principle of absolute advantage, first formulated by Adam Smith, a country should export goods if it can:
- A. Produce them using fewer resources than any other country
- B. Ensure a high tariff is placed on competitive imports
- C. Maintain a lower corporate tax rate than competitors
- D. Subsidize domestic production using government funds
In international shipping and trade, a legal document issued by a carrier to acknowledge receipt of cargo for shipment is called a:
- A. Letter of Credit
- B. Customs Declaration
- C. Bill of Exchange
- D. Bill of Lading
The historical economic policy that aimed to maximize exports and minimize imports, often by accumulating precious metals, is known as:
- A. Protectionism
- B. Mercan'tilism
- C. Free trade
- D. Monetarism

International Trade & Finance Quiz

International Trade & Finance · Easy

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In international trade, a letter issued by a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount is called a:

What is 'Import'?

What international economic institution was primarily established to provide long-term loans for the massive reconstruction of Europe after World War II?

When the total value of a nation's imported goods and services exceeds the total value of its exported goods and services, the nation is experiencing a:

The practice of taking advantage of a price difference between two or more markets, buying a currency in one market and simultaneously selling it in another for a risk-free profit, is called:

What is the currency of the European Union?

A state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, and precious metals is called a:

Trade exclusively between two specific nations, often governed by an exclusive treaty that reduces tariffs between them but not with other nations, is called:

What is 'Appreciation'?

A total ban on trade and commercial activity with a particular country, usually enacted for severe political reasons, is known as:

What is 'Free Trade'?

When a country's government or central bank ties the official exchange rate of its currency to another country's currency or the price of gold, it is using a:

Passive investments in foreign financial assets, such as simply buying stocks or bonds of a foreign company without gaining any managerial control, are classified as:

A monetary system where a country's currency or paper money has a value directly linked to a specific amount of gold is known as the:

An exchange rate regime in which a currency's value is allowed to fluctuate in response to foreign exchange market mechanisms is known as a:

What is a 'Tariff'?

What is 'Exchange Rate'?

According to the principle of absolute advantage, first formulated by Adam Smith, a country should export goods if it can:

In international shipping and trade, a legal document issued by a carrier to acknowledge receipt of cargo for shipment is called a:

The historical economic policy that aimed to maximize exports and minimize imports, often by accumulating precious metals, is known as: