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1. When a tourist goes to a bank in a foreign country Spot rate
to convert money into a local currency exchange rate
used is the
2. Country X and country Y reach an agreement to boost A free trade area
bilateral trade they agreed to remove all barriers to
the trade of goods and services. They however are free
to determine their own trade policies with regard to
nonmembers which level of economic integration is
this an example of?
3. The short term movement of funds from one currency Currency speculation
to another in the hopes of profiting from shifts in ex-
change rates is known as
4. A _____ entails even closer economic integration and Economic union
cooperation than a common market.
5. An exchange rate of € = $1. 30 indicates that One euro buys 1.30 dollars
6. Which of the following is a reason why the European Not all members of the
Union is considered an imperfect economic union? union have adopted the
euro
7. Inflation occurs when The quantity of money in
circulation rises faster than
the stock of goods and
services
8. A _____ is one which prices do not reflect all available Inefficient market
information
9.
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