STUDY CLASS NOTES 1
QUESTION: Which of the following is closely associated with purchasing power parity (PPP)?
A.
The Consumer Index
B.
Mercantilism
C.
Balance of Trade
D.
Hedging
E.
The Big Mac Index - ANSWER-E
QUESTION: For 2016, service exports to China were $54 billion and services imported from China were
negative $16 billion. From this we can conclude which of the following?
, A.
The U.S. has a service trade deficit with China.
Your answer is not correct.
B.
The U.S. has a merchandise trade surplus with China.
C.
China has a service trade surplus with the U.S.
D.
The U.S. has a service trade surplus with China.
E.
The U.S. has a surplus balance on goods and services. - ANSWER-D
QUESTION: Which of the following terms refers to the impact of currency fluctuations on a global
company's financial performance?
A.
Hedging
B.
Forward market
C.
Economic exposure
QUESTION: Which of the following is closely associated with purchasing power parity (PPP)?
A.
The Consumer Index
B.
Mercantilism
C.
Balance of Trade
D.
Hedging
E.
The Big Mac Index - ANSWER-E
QUESTION: For 2016, service exports to China were $54 billion and services imported from China were
negative $16 billion. From this we can conclude which of the following?
, A.
The U.S. has a service trade deficit with China.
Your answer is not correct.
B.
The U.S. has a merchandise trade surplus with China.
C.
China has a service trade surplus with the U.S.
D.
The U.S. has a service trade surplus with China.
E.
The U.S. has a surplus balance on goods and services. - ANSWER-D
QUESTION: Which of the following terms refers to the impact of currency fluctuations on a global
company's financial performance?
A.
Hedging
B.
Forward market
C.
Economic exposure
