Tema
Q:
Which living expense would most likely be considered nonessential on a
household budget?
A. Mortgage payment
B. Movie tickets
C. Groceries
D. Insurance
Q:
The value of the U.S. dollar compared to the currencies of major U.S. trading
partners is known as the:
A. inflation-adjusted value of the U.S. dollar.
B. trade-weighted value of the U.S. dollar.
C. free-market value of the U.S. dollar.
D. global-reserve value of the U.S. dollar.
Q:
A Japanese traveler in England is having trouble purchasing anything
because she has only Japanese currency. In order to buy the things she
wants, she has to have her Japanese yen traded in for pounds, the British
currency.
Which economic measure would be most helpful to the traveler in this
situation?
A. Exchange rate
B. Export rate
C. Interest rate
D. Inflation rate
Q:
A quota is a trade barrier that:
A. prevents trade with a single country.
B. limits the imports from a country.
C. imposes taxes on imported goods.
D. sets quality requirements on imports.
Q:
Which situation would most likely cause a currency with a flexible exchange
rate to decrease in value?
A. Interest rate increases
B. Unemployment rate decreases
C. Inflation increases
D. Gross domestic product increases
Q:
Which event resulted in the end of the Bretton Woods system?
A. The United States decided to abandon the gold standard.
B. Countries around the world tied their currencies to the U.S. dollar.
c. The United States experienced the second Industrial Revolution.
D. The Great Depression devastated economies around the world.
Q:
Which situation has become more common as a result of globalization?
A. Governments raising taxes on imported products
B. Consumers buying goods from other countries
c. Central banks directing monetary policy for countries
D. Commercial banks making risky loans to businesses
Q:
A currency with a flexible exchange rate has its value set by:
A. supply and demand for the currency in the global market.
B. the rise or fall of the country's gross domestic product.
C. the amount of gold held in the country's reserves.
D. a certain proportion of the value of another country's currency.
Q:
When the United States was on the gold standard, banks were required to:
A. only accept gold as collateral for large business loans.
B. exchange U.S. dollars for a specific amount of gold.
C. provide a certain amount of gold to the government each year.
D. use gold when conducting business with foreign clients.
Q:
Which country is experiencing a trade surplus?
A. A country with \( \$ 330 \) million in exports and \( \$ 350 \) million in imports
B. A country with \( \$ 600 \) million in exports and \( \$ 500 \) million in imports
C. A country with \( \$ 600 \) million in exports and \( \$ 600 \) million in imports
D. A country with \( \$ 500 \) million in exports and \( \$ 600 \) million in imports
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