International Trade & Finance Quiz

International Trade & Finance · Exam Mode

20 questions · 30 min timer · Results at the end

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

What is the currency of the European Union?
- A. Mark
- B. Pound
- C. Euro
- D. Franc
Which hypothesis suggests that the price of primary commodities constantly declines relative to manufactured goods over the long term, structurally hurting developing nations?
- A. The Kuznets hypothesis
- B. The Efficient Market hypothesis
- C. The Linder hypothesis
- D. The Prebisch-Singer hypothesis
Purchasing existing facilities, or acquiring a controlling stake in an already established company in a foreign country, is known as what type of investment?
- A. Greenfield investment
- B. Venture capital injection
- C. Brownfield investment
- D. Portfolio equity
What is depreciation?
- A. Inflation
- B. Profit
- C. Value rise
- D. Value fall
What is 'Fair Trade'?
- A. Unregulated trade
- B. Trade ensuring fair prices for producers
- C. Fast trade
- D. Illegal trade
In international trade terminology, foreign-owned factories in Mexico that import materials duty-free, assemble them, and then strictly export the finished products back to the US are called:
- A. Keiretsus
- B. Chaebols
- C. Zaibatsus
- D. Maquiladoras
What does IMF stand for?
- A. International Monetary Fund
- B. Internal Money Fund
- C. International Market Fund
- D. Internal Monetary Finance
Which economic model predicts bilateral trade flows based on the economic sizes of two nations and the geographical distance between them?
- A. The Ricardian Model
- B. The Krugman Trade Model
- C. The Factor Proportions Model
- D. The Gravity Model of Trade
What economic term describes the negative consequences that can arise from a spike in the value of a nation's currency, often caused by the sudden discovery of massive natural resources?
- A. The Resource Curse
- B. The Malthusian Trap
- C. The Commodity Shock
- D. Dutch Disease
Which international trade theorem states that at constant relative goods prices, an increase in the endowment of one factor will lead to a more than proportional expansion of the output in the sector which uses that factor intensively?
- A. The Heckscher-Ohlin Theorem
- B. The Stolper-Samuelson Theorem
- C. Rybczynski Theorem
- D. The Linder Hypothesis
What is 'Trade Deficit'?
- A. Zero trade
- B. Exports > Imports
- C. Profit
- D. Imports > Exports
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)
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
Which macroeconomic concept posits that a country cannot simultaneously maintain a fixed exchange rate, free capital movement, and an independent monetary policy?
- A. The Mundell-Fleming Trilemma
- B. The Efficient Market Hypothesis
- C. The Washington Consensus
- D. The Lucas Critique
What is 'Quota'?
- A. A tax
- B. A subsidy
- C. A price floor
- D. A limit on quantity of imports
What is export?
- A. Importing
- B. Trading
- C. Selling abroad
- D. Buying goods
A set of 10 economic policy prescriptions considered to constitute the standard reform package promoted for developing countries by Washington, D.C.-based institutions is called the:
- A. New Deal
- B. Bretton Woods Package
- C. Neoliberal Charter
- D. Washington Consensus
The ratio of a country's export prices to its import prices is known as its:
- A. Terms of Trade
- B. Balance of Trade
- C. Current Account Ratio
- D. Exchange Parity
Which theorem states that an increase in the relative price of a good will increase the real return to the factor of production used intensively in that good, and decrease the real return to the other factor?
- A. Rybczynski theorem
- B. Stolper-Samuelson theorem
- C. Heckscher-Ohlin theorem
- D. Coase theorem
What does WTO regulate?
- A. Finance
- B. Currency
- C. Trade
- D. Labor

International Trade & Finance Quiz

International Trade & Finance · Exam Mode

Time is up! Quiz Complete!

What is the currency of the European Union?

Which hypothesis suggests that the price of primary commodities constantly declines relative to manufactured goods over the long term, structurally hurting developing nations?

Purchasing existing facilities, or acquiring a controlling stake in an already established company in a foreign country, is known as what type of investment?

What is depreciation?

What is 'Fair Trade'?

In international trade terminology, foreign-owned factories in Mexico that import materials duty-free, assemble them, and then strictly export the finished products back to the US are called:

What does IMF stand for?

Which economic model predicts bilateral trade flows based on the economic sizes of two nations and the geographical distance between them?

What economic term describes the negative consequences that can arise from a spike in the value of a nation's currency, often caused by the sudden discovery of massive natural resources?

Which international trade theorem states that at constant relative goods prices, an increase in the endowment of one factor will lead to a more than proportional expansion of the output in the sector which uses that factor intensively?

What is 'Trade Deficit'?

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

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:

Which macroeconomic concept posits that a country cannot simultaneously maintain a fixed exchange rate, free capital movement, and an independent monetary policy?

What is 'Quota'?

What is export?

A set of 10 economic policy prescriptions considered to constitute the standard reform package promoted for developing countries by Washington, D.C.-based institutions is called the:

The ratio of a country's export prices to its import prices is known as its:

Which theorem states that an increase in the relative price of a good will increase the real return to the factor of production used intensively in that good, and decrease the real return to the other factor?

What does WTO regulate?