Imports & Exports, Balance of Payments

Contents

#1. The term "Dumping" in trade refers to:

Excessive government intervention

Transparent trade practices

High-quality exports

Exporting goods below their cost of production

#2. Which of the following is a benefit of exports for a country?

Higher unemployment rates

Increased trade deficit

Foreign exchange earnings

Reduced economic growth

#3. Which type of exchange rate system is based on the supply and demand for currencies in the foreign exchange market?

Managed exchange rate

Floating exchange rate

Fixed exchange rate

Pegged exchange rate

#4. If a country experiences a deficit in the Financial Account, it means:

It is lending more than it is borrowing

It is borrowing more than it is lending

The Current Account is in surplus

There is no impact on the economy

#5. A deficit in the Current Account can be offset by a surplus in the:

Trade Account

Financial Account

Official Reserve Account

Capital Account

#6. Which of the following is an example of an import barrier?

Tax break

Free trade agreement

Tariff

Subsidy

#7. Which of the following accounts is a part of the Current Account in the Balance of Payments?

Official Reserve Account

Trade Balance

Capital Account

Financial Account

#8. The term "Balance of Payments" includes:

Only trade in goods

Only imports

Only exports

Trade in goods and services, plus financial transactions

#9. What is the significance of a trade surplus for a country?

Lower economic growth

Decreased employment opportunities

Increased debt

Accumulation of foreign exchange reserves

#10. What does the term "Imports" refer to in commerce?

Goods and services sold to other countries

Local consumption

Goods and services brought into a country

Domestic production

#11. Which of the following is an example of an export subsidy?

Trade agreement

Tax on exports

Tariff on imports

Financial assistance to domestic producers for exports

#12. What is a trade deficit?

When imports exceed exports

When there is a balance between imports and exports

When trade is restricted

When exports exceed imports

#13. Which organization facilitates negotiations and dispute resolution in international trade?

World Health Organization (WHO)

World Trade Organization (WTO)

United Nations (UN)

International Monetary Fund (IMF)

#14. The Official Reserve Account includes transactions related to:

Changes in official reserves

Foreign aid

Import and export of goods

Foreign direct investment

#15. What is the purpose of a trade embargo?

To eliminate import tariffs

To encourage free trade

To promote exports

To restrict all trade with a particular country

#16. What is the role of a customs duty in international trade?

To promote exports

To restrict imports

To eliminate trade barriers

To encourage free trade

#17. Which of the following is a non-tariff barrier to trade?

Excise duty

Quota

Value-added tax (VAT)

Subsidy

#18. 6. What is the primary purpose of trade agreements?

- A) To increase tariffs

- B) To promote protectionism

- C) To facilitate international trade

- D) To discourage exports

#19. Which term is used to describe the situation when a country exports more than it imports?

Balance of trade

Trade surplus

Trade deficit

Trade equilibrium

#20. The Capital Account in the Balance of Payments includes transactions related to:

Goods and services

Income and transfers

International reserves

Financial assets and liabilities

Finish

Results