Important Financial(General Knowledge ) Questions and answers for exam Preparation

General Knowledge

IMPORTANT FINANCIAL MCQs

Important Financial, Finance, International Trade And Finance

Total Questions : 66 | Page 6 of 7 pages

Question 51. What is a reserve currency?

An unpredictable event may occur which affects the asset prices
A large quantity currency maintained by major financial institutions to prepare for investments to influence their domestic exchange rate
System created a collective international currency exchange regime
A supply of a commodity not needed for immediate use but available if required.

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Answer: Option B. -> A large quantity currency maintained by major financial institutions to prepare for investments to influence their domestic exchange rate

Question 52. What is the classical gold standart?

Doesn´t say
An increase of prices over the time
The possibility o an unprecedented event occur that affects asset prices
Was a system in which nearly all countries fixed the value of their currencies in terms of a specified amount of gold

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Answer: Option D. -> Was a system in which nearly all countries fixed the value of their currencies in terms of a specified amount of gold

Question 53. What are International Finances?

the trade of goods, services, technology, capital and/or knowledge across national borders
Societies and countries have differing levels of "development" on an international scale.
The study of monetary interactions between two or more countries.
None of these

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Answer: Option C. -> The study of monetary interactions between two or more countries.

Question 54. What would be one consequence of a prolonged decline in the value of the euro relative to the U

European exports to the United States would become less expensive.
U.S. exports to Europe would become cheaper.
European imports from the United States would increase.
U.S. imports from Europe would become more expensive.U.S. imports from Europe would become more expensive.

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Answer: Option A. -> European exports to the United States would become less expensive.

Question 55. What is globalization?

The increased flow of trade, people, technology, and culture among countries.
The decreased flow of trade, people, technology, and culture among countries.
The creation of one global empire and government under a single super power.
The creation of a global cellular network to use phones internationally.

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Answer: Option A. -> The increased flow of trade, people, technology, and culture among countries.

Question 56. When the economy of two countries depend on each other, it's called:

economic interdependence
multinational cooperation
isolationism
outsourcing

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Answer: Option A. -> economic interdependence

Question 57. Ad valorem tariffs are collected as

fixed amounts of money per unit traded
a percentage of the price of the product
a percentage of the quantity of imports
all of the above

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Answer: Option B. -> a percentage of the price of the product

Question 58. A trade agreement between Canada, Mexico, and the US

NAFTA
EU
WTO
ABC

Discuss Question

Answer: Option A. -> NAFTA

Question 59. A trade agreement between 27 countries of with the same currency and open trade between those nations

NAFTA
EU
WTO
ABC

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Answer: Option B. -> EU

Question 60. When people trade how do both sides benefit?

Countries can focus on producing specific goods from their natural resources instead of trying to create everything they need
Countries can take advantage of each other making the international market more secure
Countries are able to learn the weaknesses of other countries and exploit those for natural resources
Countries are able to enter other countries with spies and foreign agents to undermine governments.

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Answer: Option A. -> Countries can focus on producing specific goods from their natural resources instead of trying to create everything they need