USC IR213 Final Review questions
well answered passed
Fiat Currency - correct answer ✔✔ Currency where value comes from "faith" of people in its
value
Ex. USD
Real Interest Rate - correct answer ✔✔ Nominal interest rate - inflation rate
Phillips Curve - correct answer ✔✔ shows you the correlation between unemployment and
inflation
Ex. cannot have low unemployment and low inflation
Current Account - correct answer ✔✔ part of the balance fo payments. exports, imports,
income, and trasnfer of money
Capital Account - correct answer ✔✔ Focuses on transfers or payments that are due to changes
in ownership of assets inflows and outflows
Portfolio Investment - correct answer ✔✔ type of foreign investment Stocks, Bonds
Foreign Direct Investment - correct answer ✔✔ Partially control enterprise you invest in have a
role in managing
Sovereign Debt - correct answer ✔✔ the accumulation of national deficit or national debt
, Conditionality and the IMF Loans - correct answer ✔✔ the use of conditions attached to the
provision of benefits such as a loan debt relief or bilateral aid
countercyclical fiscal policy - correct answer ✔✔ a policy that stims an economy when it is in a
downturn and cools it when its in an upswing
Horizontal Diversification - correct answer ✔✔ Acquire companies that do the same thing to
lessen risk and increase profit
Vertical Diversifitcation - correct answer ✔✔ you are acquiring other parts of the supply chain
Obsolescing Bargain - correct answer ✔✔ private agreement where gov can change the policy
later on
Creeping Expropriation - correct answer ✔✔ gov gradually takes over foreign company
(nationalizing)
Bureaucratic Risk - correct answer ✔✔ the risk of long processing time, "red tape"
Dutch Disease - correct answer ✔✔ the relationship between the increase in economic
development and a decline in other sectors
resource curse - correct answer ✔✔ countries with an abundance of natural resources tend to
have less economic growth. Become dependent on single resource
Brain Drain - correct answer ✔✔ the most skilled and educated workers leave developed
countries
H1B Visa - correct answer ✔✔ employment/ skill based work visa
well answered passed
Fiat Currency - correct answer ✔✔ Currency where value comes from "faith" of people in its
value
Ex. USD
Real Interest Rate - correct answer ✔✔ Nominal interest rate - inflation rate
Phillips Curve - correct answer ✔✔ shows you the correlation between unemployment and
inflation
Ex. cannot have low unemployment and low inflation
Current Account - correct answer ✔✔ part of the balance fo payments. exports, imports,
income, and trasnfer of money
Capital Account - correct answer ✔✔ Focuses on transfers or payments that are due to changes
in ownership of assets inflows and outflows
Portfolio Investment - correct answer ✔✔ type of foreign investment Stocks, Bonds
Foreign Direct Investment - correct answer ✔✔ Partially control enterprise you invest in have a
role in managing
Sovereign Debt - correct answer ✔✔ the accumulation of national deficit or national debt
, Conditionality and the IMF Loans - correct answer ✔✔ the use of conditions attached to the
provision of benefits such as a loan debt relief or bilateral aid
countercyclical fiscal policy - correct answer ✔✔ a policy that stims an economy when it is in a
downturn and cools it when its in an upswing
Horizontal Diversification - correct answer ✔✔ Acquire companies that do the same thing to
lessen risk and increase profit
Vertical Diversifitcation - correct answer ✔✔ you are acquiring other parts of the supply chain
Obsolescing Bargain - correct answer ✔✔ private agreement where gov can change the policy
later on
Creeping Expropriation - correct answer ✔✔ gov gradually takes over foreign company
(nationalizing)
Bureaucratic Risk - correct answer ✔✔ the risk of long processing time, "red tape"
Dutch Disease - correct answer ✔✔ the relationship between the increase in economic
development and a decline in other sectors
resource curse - correct answer ✔✔ countries with an abundance of natural resources tend to
have less economic growth. Become dependent on single resource
Brain Drain - correct answer ✔✔ the most skilled and educated workers leave developed
countries
H1B Visa - correct answer ✔✔ employment/ skill based work visa
