Reference no: EM131160440
1. the general agreement on tariffs and trade is an international agreement
a. to encourage world trade by lowering tariffs and other trade barriers
b. between the US and japan that has never been ratified resulting in several trade wars with japan
c. to encourage world trade by lending resources to developing countries
d. that outlaws all tariffs but permits quotas
2. assume the US government wants to hold the value of the dollar at $1=10 chinese yuan, but it finds that the value of yuam is depreciating against the US dollar. what would be an appropriate policy to reverse this trend?
a. buy US dollars
b. sell US dollars
c. increase the money supply in the US
d. increase government spending within the US
3. flexible exchange rates are deterrmined by
a. the foces of supply and demand.
b. the government of the importing country
c. the government of the exporting country
d. the IMF
4. the difference between the exports and imports of goods in a country is refered to as the
a. balance of power
b. echange rate
c. balance of payments
d. balance of trade
5. all of the following deficit items are in the balance of payments accounts except
a. US purchases for foreign companies stocks and bonds
b. US residents purchases of gold from foreign residents
c. US tourists spending funds in europe
d. exports of merchandise
6. in the long run, imports are paid for by:
a. investment
b. dollars
c. gold or other universally accepted monies
d. exports
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