Econ-International Business and operations exam questions with answers 2022

Econ-International Business and operations exam
questions with answers 2022
 Historically, what is the top remittance-receiving country in Latin America?
A) Brazil
B) Mexico
C) Uruguay
D) Venezuela
Answer: C
Diff: 2
Learning Outcome: Describe the functions of the foreign-exchange market
Skill: Concept
Objective: 9-1 Define what foreign exchange is and who the major players are in the foreign-
exchange market
AACSB: Analytical thinking

 Which of the following is the largest source of foreign-exchange income in Mexico?
A) FDI
B) tourism
C) foreign aid
D) remittance
income Answer: D
Diff: 2
Learning Outcome: Describe the functions of the foreign-exchange market
Skill: Concept
Objective: 9-1 Define what foreign exchange is and who the major players are in the foreign-
exchange market
AACSB: Application of knowledge

 Which term refers to money denominated in the currency of another nation or group
of nations?
A) foreign exchange
B) foreign subsidy
C) export tariff
D) quota
Answer: A
Diff: 1
Learning Outcome: Describe the functions of the foreign-exchange market
Skill: Concept
Objective: 9-1 Define what foreign exchange is and who the major players are in the foreign-
exchange market
AACSB: Analytical thinking




1

,Econ-International Business and operations exam
questions with answers 2022

 A(n) is the price of a currency.
A) tariff
B) quota
C) exchange rate
D) subsidy
Answer: C
Diff: 1
Learning Outcome: Describe the functions of the foreign-exchange market
Skill: Concept
Objective: 9-1 Define what foreign exchange is and who the major players are in the foreign-
exchange market
AACSB: Analytical thinking

 If Toranaga-san, who works for a Japanese trading company that operates in Japanese
yen, wanted to purchase Spanish castanets from a company in Barcelona and needed euros
to complete the transaction, he would use the to gain access to spot euros.
A) stock market
B) foreign-exchange market
C) New York Stock Exchange
D) international export
market Answer: B
Diff: 2
Learning Outcome: Describe the functions of the foreign-exchange market
Skill: Application
Objective: 9-1 Define what foreign exchange is and who the major players are in the foreign-
exchange market
AACSB: Application of knowledge

 The relationship between the value of the Brazilian and Chinese currencies is known as the
.
A) stock price
B) exchange rate
C) foreign-exchange market
D) purchasing power parity
Answer: B
Diff: 2
Learning Outcome: Define the fundamental concepts of international business
Skill: Application
Objective: 9-1 Define what foreign exchange is and who the major players are in the foreign-
exchange market
AACSB: Application of knowledge




2

,Econ-International Business and operations exam
questions with answers 2022

 In foreign-exchange markets, reporting dealers are .
A) financial institutions that actively participate in local and global foreign-exchange markets
B) located primarily in New York City since U.S. dollars are the most widely traded currency
C) controlled by the Bank for International Settlements located in Switzerland
D) hedge funds and pension funds monitored by the World
Bank Answer: A
Diff: 2
Learning Outcome: Describe the functions of the foreign-exchange market
Skill: Concept
Objective: 9-1 Define what foreign exchange is and who the major players are in the foreign-
exchange market
AACSB: Analytical thinking

 Which of the following would have the LEAST influence on price setting in the
foreign- exchange market?
A) Morgan Stanley
B) Deutsche Bank
C) Western Union
D) JP Morgan
Answer: C
Diff: 2
Learning Outcome: Describe the functions of the foreign-exchange market
Skill: Concept
Objective: 9-1 Define what foreign exchange is and who the major players are in the foreign-
exchange market
AACSB: Analytical thinking

 Stella, who works and lives in San Diego, wants to send money to her mother who lives in a
small village south of Puerto Vallarta, Mexico. Stella typically uses Western Union to handle
the transaction. Which of the following is the most likely reason that Stella uses Western
Union?
A) no fees
B) convenience
C) low exchange rates
D) cross rate
capability Answer: B
Diff: 2
Learning Outcome: Describe the functions of the foreign-exchange market
Skill: Application
Objective: 9-1 Define what foreign exchange is and who the major players are in the foreign-
exchange market
AACSB: Application of knowledge




3

, Econ-International Business and operations exam
questions with answers 2022

 An exchange rate is the number of units that buys one unit of another
currency. Answer: TRUE
Diff: 1
Learning Outcome: Describe the functions of the foreign-exchange market
Skill: Concept
Objective: 9-1 Define what foreign exchange is and who the major players are in the foreign-
exchange market
AACSB: Analytical thinking

 A tariff is the price of a currency.
Answer: FALSE
Diff: 1
Learning Outcome: Describe the functions of the foreign-exchange market
Skill: Concept
Objective: 9-1 Define what foreign exchange is and who the major players are in the foreign-
exchange market
AACSB: Analytical thinking

 In foreign-exchange markets, reporting dealers trade more foreign exchange with
other reporting dealers than with any other category of users.
Answer: TRUE
Diff: 2
Learning Outcome: Describe the functions of the foreign-exchange market
Skill: Concept
Objective: 9-1 Define what foreign exchange is and who the major players are in the foreign-
exchange market
AACSB: Analytical thinking

 Most foreign exchange is handled through voice brokers.
Answer: FALSE
Diff: 2
Learning Outcome: Describe the functions of the foreign-exchange market
Skill: Concept
Objective: 9-1 Define what foreign exchange is and who the major players are in the foreign-
exchange market




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