BUSI 604 Test 2 | A+ Grade

Course  201830 Summer 2018 BUSI 604-B01 LUO

Time Elapsed     1 hour, 14 minutes out of 1 hour and 15 minutes

Instructions        •             Time limit: 1 hour and 15 minutes

•             75 true/false and multiple-choice questions

•             Open-book/open-notes

•             Do not hit the BACK button as this will lock you out of the test.

•             The timer will continue if you leave this test without submitting it.

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•             Question 1

0 out of 2 points

The most important issue in understanding the effects of exchange rates on business is its (________).

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•             Question 2

2 out of 2 points

Speculation generally means buying a commodity when its price is low and then reselling it after prices rise in order to make a profit.

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•             Question 3

2 out of 2 points

The role of the World Bank is to supervise the exchange rate practices of member countries and to encourage the free convertibility of any national money into the monies of other countries.

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•             Question 4

2 out of 2 points

Smaller nations that have limitations and restrictions on their currencies, are considered to possess (_____) currencies.

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•             Question 5

2 out of 2 points

The FX swap of currency amounts is normally variable.

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•             Question 6

0 out of 2 points

(___________) is considered a sign of economic recovery and stabilization but makes the currency of a country more expensive compared to other currencies, having a direct inverse effect on exports and imports.

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•             Question 7

2 out of 2 points

Global Financial Markets include both(__________) and (________) market places that make the cross-border exchange of goods and services between buyers and sellers possible.

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•             Question 8

2 out of 2 points

Global financial markets are important to lenders for two major reasons: (1) expanding (________) and (2) reducing (________).

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•             Question 9

2 out of 2 points

The end result of the global competition is higher (_______) and lower (_________) for consumers.

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•             Question 10

2 out of 2 points

After the Gold Standard was discontinued in 1971, the (___________) followed the rule of supply and demand, and currencies started to flow freely between sellers and buyers in currency markets.

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•             Question 11

2 out of 2 points

OTC participants trade on a physical trading floor.

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•             Question 12

2 out of 2 points

Since the world thrives to trade and does not have a uniformed international currency, the exchange rate from one currency to another is determined by (______) and (________) on a given day on the FX Market.

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•             Question 13

2 out of 2 points

(______) rates indicate the exchange rate of one currency in units of another currency immediately.

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•             Question 14

2 out of 2 points

A bond is a certificate with a certain monetary value.

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•             Question 15

2 out of 2 points

The Federal Exchange Commission is the main authority issuing regulations over the American securities exchange markets.

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•             Question 16

2 out of 2 points

The (___________) monitors the various companies and organizations that are quoted on the security exchange and make sure they meet the requirements for being listed.

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•             Question 17

2 out of 2 points

In ideal functioning markets, speculation and (_______) assist in the reduction of unavoidable risks associated with uncertainties, such as unemployment, catastrophic losses, and diminished business revenue.

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•             Question 18

2 out of 2 points

Fixed exchange rates, also known as pegged exchange rates, occur when a government or central bank ties the official exchange rate to another country’s currency or the price of gold.

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•             Question 19

2 out of 2 points

In a (_______) union, members have the same rights as in a free trade area, with the exception that they will now all have the same trade policy towards nonmembers.

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•             Question 20

2 out of 2 points

Mercosur ranks as one of the four largest trading blocs and one of the largest economies in the world.

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•             Question 21

2 out of 2 points

The Schengen Agreement abolished passport and border controls within the internal-national boundaries of the (_______).

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•             Question 22

0 out of 2 points

Signatory nations a part of CACM have not been able to achieve their wider aims of stronger economic and political unification because of a failure to settle (________).

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•             Question 23

0 out of 2 points

Increasing attention is being paid to the rapidly growing economies of (_______) and (_________), as they evolve from primarily agricultural dependence into industrial giants with regional superpower status.

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•             Question 24

0 out of 2 points

(_________) is the largest agreement in the world (approximately 1.56 billion people).

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•             Question 25

0 out of 2 points

(________) was incorporated within the establishments of NAFTA.

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•             Question 26

2 out of 2 points

European Parliament elections are held every five years, and all register EU citizens are allowed to vote.

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•             Question 27

2 out of 2 points

More than 60 percent of Africa’s people depend upon agriculture, with farming being mostly of the subsistence variety.

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•             Question 28

2 out of 2 points

The Caribbean Community and Common Market (CARICOM) is an example of a (___________).

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•             Question 29

2 out of 2 points

(________) gives every state the right to lead its existence free from external interference.

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•             Question 30

2 out of 2 points

All EU members are obliged to adopt the Euro as their national currency, with the exception of (______) and (______), which have been exempted under the terms of the Maastricht Treaty.

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•             Question 31

2 out of 2 points

According to its proponents, (_________) helps nations take advantage of the unprecedented wealth the global economy is producing.

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•             Question 32

2 out of 2 points

South America is one of the largest trading blocs in the world.

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•             Question 33

0 out of 2 points

The main objective of (______) was to create a sustainable food source for the member countries of the ECOWAS.

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•             Question 34

2 out of 2 points

The (______) is guided by the belief in the importance of building an integrated petroleum industry as a cornerstone for future economic integration amongst Arab countries.

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•             Question 35

2 out of 2 points

All EU members are obliged to adopt the Euro as their national currency, with the exception of Great Britain and France.

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•             Question 36

2 out of 2 points

The (_________) was established in 1960 as an economic counterpart to the North Atlantic Treaty Organization (NATO).

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•             Question 37

2 out of 2 points

Agreements between participating nations are managed and promoted through (__________).

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•             Question 38

2 out of 2 points

To avoid obsolescence and promote innovation, a firm must be aware of (_________) changes that might influence the industry.

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•             Question 39

0 out of 2 points

The key factors that influence the entry mode selection are as follows:

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•             Question 40

0 out of 2 points

Proactive reasons are based on the firm’s behavior with respect to the environment and adaptation to changes from outside the firm.

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•             Question 41

2 out of 2 points

Low production cost in a country encourages local production.

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•             Question 42

0 out of 2 points

The (______________) is one of the global market knowledge competencies required to succeed in the global marketplace.

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•             Question 43

2 out of 2 points

Firms are better off selecting non-equity, low-investment entry modes in    countries that have low environmental uncertainty.

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•             Question 44

2 out of 2 points

Joint ventures usually involve an alliance where two or more companies contribute assets, which results in the formation of a new legal entity.

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•             Question 45

2 out of 2 points

Entering the market at the right time, or the wrong time can have tremendous effects on the success or failure of the expansion.

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•             Question 46

0 out of 2 points

The primary private sector facilitator for intermediaries, outside of expo