TCQT

1.What is the Balance of Payments (BOP)?

• A. National income report

• B. A summary of all economic transactions between a country’s residents and the rest of the world over a specific period

• C. Domestic trade report

• D. National public debt report

2.Which of the following is NOT a main component of the BOP?

• A. Current Account

• B. Capital Account

• C. Financial Account

• D. Tax Account

3.What transactions are included in the Current Account?

• A. Trade in goods and services, investment income, international transfers

• B. Foreign direct investment

• C. Transfers of financial assets

• D. Domestic bank loans

4.What does the Capital Account primarily record?

• A. Foreign direct investment

• B. Cross-border transfers of financial assets such as patents and trademarks

• C. Trade in goods

• D. Investment income

5.What transactions are recorded in the Financial Account?

• A. Trade in goods and services

• B. Foreign direct investment, portfolio investment, and other capital investments

• C. International transfers

• D. Import/export taxes

6.If a country has a current account deficit, what is the likely trend of the capital and financial accounts?

• A. Also in deficit

• B. Balanced

• C. Positive

• D. Unrelated

7.Which organization was established in 1944 to promote international monetary cooperation and provide temporary financial assistance to countries with balance of payments problems?

• A. World Bank

• B. IMF

• C. WTO

• D. OECD

8.Which organization provides a legal and institutional framework for international trade and resolves trade disputes between countries?

• A. IMF

• B. World Bank

• C. WTO

• D. IFC

9. How does outsourcing affect international trade?

• A. Reduces international trade

• B. Increases international trade as multinational companies purchase goods/services from abroad

• C. No effect

• D. Only affects the domestic labor market

10.Which of the following is NOT a major factor affecting international trade flows?

• A. Labor costs

• B. Inflation

• C. National income

• D. Color of the national flag