Work income = Income paid by foreigners to domestic residents - Income paid by Spain to foreign residents
Work income = Income paid by Spain to foreign residents - Income paid by foreigner to demestic residents
If the current account balance is negative (Income lower than payments), the country is said to have a current account ___
Surplus
Deficit
Balance
If the joint balance of the current account and capital account is negative, it means that our payments to the rest of the world have been ___ than what we have collected
The other answers are correct
Lower
Greater
The more indebted a country is, the ___ the amount of interest it must pay on its debt
The other answers are correct
Lower
Greater
If a resident in Spain buys shares in a foreign company there is a capital ___
Outflow
Inflow
The other answers are correct
Investments (direct and portfolio) of Spain abroad are a capital ___
Outflow
Inflow
The other answers are correct
Foreign deposits in Spain have a ___ sign in the Financial Account
Negative
Positive
Neutral
When a country invest in Spain, Spain becomes a ___ of that country
The other answers are correct
Creditor
Debtor
When the balance of the financial balance is negative, it is said that there has been a net capital ___
Outflow
Inflow
The other answers are correct
When Spain imports a car to the United States and pays for the car with a check for €20,000, this operation, for us, is a capital ___
The other answers are correct
Export
Import
Suppose that Spain exports wine to the United States for an amount of $15,000. The wine company has received a check for $15,000 which is exchanged at the Central Bank for euros. Therefore, the Central Bank is buying dollars in exchange for euros, thus increasing the assets of the United States in the hands of the Spanish people, that is, Spain is becoming the ___ of the United States
Debtor
Creditor
The other answers are correct
Suppose that Spain buys shares for an amount of €10,000 in an American company. Payment in euros means that domestic assets in the hands of the rest of the world ___
Decrease
The other answers are correct
Increase
The item of errors and omissions, derived from the difficulty of obtaining absolute precision in the annotation of operations, must be ___
Minimal
Maximum
The other answers are correct
The ___ exchange rate is the rate at which an organization can trade goods and services from one economy (for example, from one country) for those from another economy
Trust
Real
The other answers are correct
A ___ exchange rate prevents a government from using national monetary policy to achive macroeconomic stability
Floating
Fixed
The other answers are correct
A floating exchange rate ___ the volatility of currencies
The other answers are correct
Decreases
Increases
If the euro/dollar exchange rate increases in the euro zone, exports ___
Increase
Decrease
The other answers are correct
In a country with the gold standard system, if domestic prices decrease, imports ___
Increase
Decrease
The other answers are correct
The gold standard ___ be susceptible to speculative attacks
The other answers are correct
Can't
Can
With the IMF system, it was ___ to determine if the imbalance was temporary or no
Difficult
Easy
The other answers are correct
The ___ conference is an agreement by world political leaders to establish the framework for international trade and finance and the founding of various international institutions intended to oversee the process of globalization
Springfield
Bretton Woods
Marks & Spencer
Since World War II subsidies for local businesses have ___
The other answers are correct
Increased
Reduced
The North American Free Trade Agreement is called ___
NAFTA
EFTA
MERCANORTE
Politically, the ___ have enjoyed a position of power among world powers; partly because of its strong and rich economy
Scandinavian countries
USA
Netherlands
One of the effects of globalization is that ___ competition
The other answers are correct
It has decreased
It has increased
The ___ fish farm in Granada exports up to 40% of its caviar production
Riofrio
Riotinto
Montefrio
The balance of the financial account balance ___
May differ from zero
Is always zero
The other answers are correct
___ income refers to income and payments derived from income form capital movements (dividends and interest)
The other answers are correct
Capital
Work
___ balance includes: 1) Unilateral capital transfers without counterpart that don't modify national income. This includes the cohesion funds of the European Union and also debt forgiveness. 2) Purchase and sale of intangible assets (patents, trademarks, copyrights, etc.), as well as purchase and sale of non-financial non-produced assets
Current account
Capital account
Financial account
If the joint balance of the current account and capital account is negative, our country ___
The other answers are correct
Finance the rest of the world
Needs financing from the rest of the world
Being a country heavily in debt, it will be increasingly ___ to get someone (some country) to finace it
The other answers are correct
Easy
Difficult
If a resident in Spain decides to deposit their savings in a foreign deposit, there is a capital ___
Outflow
Inflow
The other answers are correct
Investments (direct and portfolio) of Spain abroad have a ___ sign in the Financial Account
Negative
Positive
The other answers are correct
Loans from Spain abroad are a capital ___
Inflow
Outflow
The other answers are correct
The financial balance reflects the ___ position of a country with respect to the rest of the world
Debtor
Creditor
The other answers are correct
Official international reserves are made up mainly of foreign currencies, (mainly ___) and represents a foreign asset in the hands of central banks
Dollars
Sterling Pounds
Yens
When Spain imports a car to the United States and pays for the car with a check for €20,000, this operation, is recorded with a ___ sign in the balance of official transactions
Neutral
Positive
Negative
Suppose that Spain exports wine to the United States for an amount of $15,000, this operation will be recorded with a ___ sign in the Reserve Transfer Balance
Positive
Negative
The other answers are correct
Suppose that Spain buys shares for an amount of €10,000 in an American company. This operation involves the ___ of an internal asset: euros
Purchase
The other answers are correct
Sale
The ___ rate between two specific currencies, is defined as how much one currency is worth in terms of the other
Exchange
Interest
The other answers are correct
If the price of a good increases 10% in Great Britain, and the Japanese currency simultaneously appreciates 10% against the British currency, then the price of the good ___ for someone in Japan
Decreases
Remains constant
Increases
A ___ exchange rate is also called a flexible exchange rate
Fixed
Floating
The other answers are correct
___ economies have a financial sector with one or more of the following conditions: high enforceable dollarizarion (debts), financial fragility and strong effects on the balance sheet of banks and companies
The other answers are correct
Developed
Emerging
If, in the euro zone, imports decrease and exports increase, the demand for the dollar ___
Decreases
Increases
The other answers are correct
The total amount of gold that has been mined is ___ the value of money in circulation only in the United States
Exactly
Less than
More than
Some believe that the United States was forced to ___ its interest rates in the middle of the Great Depression to defend the credibility of its currency
The other answers are correct
Reduce
Raise
With the IMF system, the adjustments were ___
Abrupt
Soft
The other answers are correct
The International bank for ___ is the World Bank
The other answers are correct
Reconstruction and Development
Growth and sustainability
Since World War II, intellectual property laws have been ___
The other answers are correct
Discorded
Harmonized
One of the effects of globalizarion is that production markets have developed ___
Globally
Locally
Neither of the other answers is correct
The ___ Republic of China has experienced tremendous growth in the past decade
National's
People's
The other answers are correct
Globalization and free trade can ___ pollution
The other answers are correct
Decrease
Increase
Andalusian trade is focused on the export of ___ products
Agri-food
Energy
The other answers are correct
The ___ balance includes transactions derived form trade of goods and services, income and payments derived from labor and capital income, and income and payments derived from unilateral transfers without counterpart (mainly remittances from immigrants)
Current account
Financial account
Capital account
Transfers balance includes income and payments form ___ transfers
The other answers are correct
Unilateral without counterpart
Multilateral with counterpart
The balances of the Current Account and Capital Account are interpreted ___
Separately
Jointly
The other answers are correct
If the joint balance of the current account and capital account is negative, the income we receive from our sales to the rest of the world ___ enough to cover the payments that we must make to the rest of the world
The other answers are correct
Is
Isn't
___ balance shows the difference between capital inflows from the rest of the world and capital outflows to the rest of the world
Current account
Capital account
Financial account
Capital inflows are recorded with a ___ sign in the Financial Account
Positive
Negative
Neutral
Foreign investments (direct and portfolio) in Spain are capital ___
Inflow
Outflow
The other answers are correct
Loans from Spain abroad have a ___ sign in the Financial Account
Positive
Negative
The other answers are correct
If the balance of the financial balance is ___, it means that there have been more capital inflows into Spain than outflows
Neutral
Negative
Positive
Central banks often buy and sell currencies (official interventions in the currency market) in order to control monetary ___
Supply
Demand
The other answers are correct
A positive sign in our Reserves Variation item or Reserve Transaction Balance means that domestic assets are ___ in the hands of foreigners
The other answers are correct
Increasing
Decreasing
Suppose that Spain exports wine to the United States for an amount of $15,000, this operation is a capital ___
Export
Import
The other answers are correct
Suppose that Spain buys shares for an amount of €10,000 to an American company. This operation will have its counterpart in the Variation of Reserves with ___ sign
Negative
The other answers are correct
Positive
The ___ rate between two specific currencies is the value of the currency of a foreign nation in terms of the currency of another country
Exchange
Interest
The other answers are correct
The ___ index published by the Economist magazine compares, through the reference value of the sale of aforesaid hamburguer, belonging to the McDonald's fast food chain, the cost of living in the countries where the hamburger is sold
Whopper
Big Mac
The other answers are correct
A ___ exchange rate is an exchange rate regime where the value of a currency is allowed to fluctuate according to the Foreign Exchange Market
Fixed
Floating
The other answers are correct
When ___, unexpected depreciation of the exchange rate deteriorates the balance sheet of banks and companies and threaten the stability of the national financial system
The other answers are correct
Liabilities (debts) and assets are expressed in local currency
Liabilities (debts) are expressed in foreign currency while assets are in local currency
In an international gold standard system (which is necessarily based on an internal gold standard in the affected countries) ___ is used as a means of making international payments
The other answers are correct
A currency that is convertible into gold at a fixed price
Gold
Following a gold standard would mean that the quantity of money would be determined by the supply of gold, and therefore monetary policy ___ to stabilize the economy in times of economic recession
The other answers are correct
Couldn't be used
Could be used
After abandoning the Gold Standard, the IMF proposed different systems for fluctuating exchange rates. One possibility raised is the one that allows a fluctuation of ___ on each side of the exchange rate set by the Central Bank
3%
2%
1%
With the IMF system, countries with surplus ___ willing to raise the parity of their currencies
Weren't
Were
The other answers are correct
___ has been facilitated by advances in technology that have reduced the cost of trade
The other answers are correct
Globalization
Isolation
Since World War II, there has been a ___ recognition of restrictions on intellectual property
The other answers are correct
Local
Supranational
One of the effects of globalization is that there is ___ access to a range of foreign products for consumers and companies
Higher
Lower
The other answers are correct
In the future, ___ will have enough wealth, industry and technology to rival the United States for the position of leading world power
Brazil
China
Germany
There is ___ individual access to cultural diversity
The other answers are correct
Worse
Better
Andalusian trade is focused on importing ___ products
Energy
Agri-food
The other answers are correct
___ balance is classified into: Trade balance, Services balance, Income balance and Transfers balance
Current account
Financial account
Capital account
___ transfers are mainly remittances from immigrants (when an immigrant residing in our country sends to his country of origin what he has managed to save for his work in Spain)
The other answers are correct
Unilateral
Multilateral
If the joint balance of the current account and capital account is positive, it means that the income from the rest of the world from exports, income from labor and capital income, transfers received, etc. are ___ than the payments made by our imports, payments related to labor and capital incom and transfer abroad
Lower
Higher
The other answers are correct
If the joint balance of the current account and capital account is negative ___
The other answers are correct
We lend money abroad
We are in debt with the outside
A capital ___ to our country occurs when a sale of domestic assets is made to residents abroad
Outflow
The other answers are correct
Inflow
Capital inflows are a ___ in the Financial Account
Credit
Debit
The other answers are correct
Foreign investments (direct and portfolio) in Spain have a ___ sign in the Financial Account
Positive
Negative
The other answers are correct
Loans from the rest of the world to Spain are a capital ___
Outflow
Inflow
The other answers are correct
If the balance of the financial balance is positive, Spain becomes ___
The other answers are correct
Creditor
Debtor
Official reserve transactions are the purchases and sales of official reserves by ___ banks
Central
Industrial
Commercial
A positive sign in our Reserves Variation item or Reserve Transaction Balance means that we are becoming ___ for the rest of the world
The other answers are correct
Debtors
Creditors
Suppose that Spain exports wine to the United States for an amount of $15,000, it is the ___ of a foreign asset
Sale
Purchase
The other answers are correct
The reserves Variation item includes all the counterparts derived form international transactions (___)
Capital movements
Trade in goods and services
The other answers are correct
An exchange rate of 102 Japanese yens per dollar means that 102 yens are worth the same as ___
1 dollar
100 dollars
The other answers are correct
An ___ exchange rate is sometimes called a pegged exchange rate
Floating
Fixed
The other answers are correct
As ___ exchange rates adjust automatically, they allow a country to cushion the impact of shocks and foreign economic cycles, and to anticipate the possibility of having a crisis in the Balance of Payments
Fixed
Floating
The other answers are correct
Emerging countries seem to have a ___ fear of floating
The other answers are correct
Lower
Greater
Under the ___ system, when exchange rates rise above or fall bellow the rate set by more than the cost of transporting gold from one country to another, large inflows or outflows occur until the rates return to the official level
Gold standard
The other answers are correct
IMF
Following a ___ would mean that monetary policy would be essentially determined by the rate of gold production
Fixed exchange rate
Gold standard
Floating exchange rate
In the IMF system, if imports increase, the demand for dollars ___
Keeps equal
Decreases
Inceases
Under the IMF system, countries ___ autonomy over monetary policy
Don't have
Have
The other answers are correct
Globalization has been facilitated by rounds of trade negotiations, originally under the auspices of the ___ that led to a serie of agreements to remove restrictions on free trade
The other answers are correct
General Agreement on Tariffs and Trade
General Agreement on International trade
Cultural globalization, driven by the communication technology and world marketing of Western cultural industries, was understood at first as a process of ___, by the global domination of American culture
The other answers are correct
Diversification
Homogenization
One of the effects of globalization is that there is ___ access to external financing for borrowers
Better
Worse
The other answers are correct
The most popular language is ___
Spanish
English
French
International travel and tourism ___
The other answers are correct
Have decreased
Have increased
The three main countries that buy Andalusian products are ___ with 33% of total exports
Germany, France and Italy
The United States, China and Brazil
North Korea, South Korea, and Central Korea
___ Balance = Income - Payments derived from merchandise trade
Trade
Financial
Capital
___ transfers are subsidies made by the European Union to member countries
The other answers are correct
Unilateral
Multilateral
If the joint balance of the current account and capital account is positive, our country ___ financing capacity compared to the rest of the world
Doesn't have
Has
The other answers are correct
If the joint balance of the current account and capital account is negative (Payments higher than Income) ___ our external debt
The other answers are correct
Will decrease
Will increase
The sale of shares of a Spanish company to a resident of the United States would be the sale of an ___ financial asset
External
The other answers are correct
Internal
Capital outflows are recorded with a ___ sign in the Financial Account
Negative
Positive
Neutral
Spain's deposits abroad are a capital ___
Outflow
Inflow
The other answers are correct
Loans from the rest of the world to Spain have a ___ sign in the Financial Accont
Negative
Positive
The other answers are correct
If the balance of the financial balance is positive, it is said that there has been a net capital ___
The other answers are correct
Outflow
Inflow
When Spain imports a car to the United States and pays for the car with a check for €20,000, this represents a ___ entry in the current account of Spain due to the importation of the car
Negative
Positive
The other answers are correct
Suppose that Spain exports wine to the United States for an amount of $15,000. The export is marked with a ___ sign in the Current Account
The other answers are correct
Positive
Negative
The operation that affect ___ Account are reflected in the Reserves Variation item
Financial
The other answers are correct
Current
If the balance of the Reserve Variation is positive, it indicates that the domestic assests are ___ in the hands of foreigners
The other answers are correct
Decreasing
Increasing
The ___ exchange rate refers to the current exchange rate
Spot
Split
The other answers are correct
An ___ exchange rate is an exchange rate regime where the value of one currency corresponds to the value of another currency or a basket of other currencies, or to another measure of value, such as gold
Floating
Fixed
The other answers are correct
In cases of extreme ___, a central bank will normally intervene to stabilize the currency
Appreciation
The other answers are correct
Depreciation
With the floating exchange rate, if imports increase in the eurozone, the demand for the dollar ___
The other answers are correct
Decreases
Increases
In a country with the gold standard system, if imports increase, the total amount of gold in a country ___
Decreases
Keeps
Increases
With a gold standard, fluctuations in the amount of gold that is mined could cause inflation, if there is ___
A decrease
An increment
The other answers are correct
In the IMF system, if the demand for dollars increases, the euro/dollar exchange rate ___
Keeps
Decreases
Increases
The IMF system depended on a single currency, ___
The US dollar
The Sterling pound
The German mark
Since World War II, barriers to international trade have been considerably ___ through international agreements
The other answers are correct
Lowered
Increased
The Uruguay Round was ___
1992 to 1995
1990 to 2000
1986 to 1994
The instability of the global financial infraestructure increased dramatically, as evidenced by the financial crisis of the past ___
2008
1929
1979
Around ___ of the post, telex and cables are in English
15%
35%
95%
The WHO estimates that up to ___ people are on airplanes at any one time
400,000
300,000
500,000
___ mainly sell oil to Andalusia with 24.2% of imports
Algeria, Nigeria and Russia
Norway, Switzerland and Iceland
Norway, Sweden and Finland
___ Balance = Income - Payments derived from trade in services (tourism, transport freight, business services, insurance services, etc.)
Services
Trade
Capital
___ transfers are economic contributions to the EU budget, development aid, etc.
The other answers are correct
Unilateral
Multilateral
If the joint balance of the current account and capital account is positive, with our income from the rest of the world ___ able to finance the payments that the rest of the world must make to us
Aren't
Are
The other answers are correct
A country ___ maintain a chronic account deficit
The other answers are correct
Can
Can't
The sale of Spanish government bonds to a foreign resident would be the sale of an ___ asset
External
The other answers are correct
Internal
Capital outflows are a ___ in the Financial Account
Debit
Credit
The other answers are correct
Deposits from Spain abroad have a ___ sign in the Financial Account
Negative
Positive
The other answers are correct
The balance of transactions of official reserves or Variation of international official reserves (___) includes the foreign assets in the hands of the Central Bank
Gold
The other answers are correct
Currencies
When the balance of the financial balance is ___, it means that capital outflows have been greater than capital inflows
The other answers are correct
Positive
Negative
When Spain imports a car to the United States and pays for the car with a check for €20,000, for us the payment of the 20,000 euros has meant the ___ of an internal asset
Sale
Purchase
The other answers are correct
Suppose that Spain exports wine to the United States for an amount of $15,000. The wine company has received a check for $15,000 which is exchanged at the Central Bank for euros. Therefore, the Central Bank is ___
The other answers are correct
Buying dollars in exchange for euros
Buying euros in exchange for dollars
Suppose that Spain buys shares in an American company. This supposes a capital ___ for Spain
Inflow
Outflow
The other answers are correct
If the balance of the Reserve Variation is positive, the country is a ___ of the rest of the world
The other answers are correct
Creditor
Debtor
The ___ exchange rate refers to an exchange rate that is indicated and traded today but for delivery and payment on a specific future date
Forward
Backward
The other answers are correct
A ___ exchange rate is usually used to stabilize the value of a currency to the currency to which it is pegged
Floating
Fixed
The other answers are correct
The floating exchange rate regime may be more technically known as ___ floating
Fixed
Managed
The other answers are correct
If demand for the dollar increases in the eurozone, the euro/dollar exchange rate ___
The other answers are correct
Decreases
Increases
In a country with the gold standard system, if the amount of gold in a country decreases, domestic prices ___
Decrease
Keep
Increase
With a gold standard, fluctuations in the amount of gold that is mined could cause deflation, if there is ___
An increment
A decrease
The other answers are correct
In the IMF system, if the euro/dollar exchange rate increases, the Central Bank ___ the supply of dollars
Keeps
Decreases
Increases
___ is the process by which the people of the world are united in a single society and work together
The Globalization
The isolationism
The other answers are correct
Since WWII, transport costs have ___
The other answers are correct
Lowered
Increased
The Uruguay Round led to a treaty to create the ___ Trade Organization
Local
International
World
One of the effects of globalization is that there is a ___ common market
Global
Local
Regional
Approximately ___ of world radio programs are in English
10%
40%
90%
There is a ___ immigration
The other answers are correct
Lower
Higher
The challenge for Andalusia in the future is to ___ its exports to other more elaborate products with greater added value
Diversify
Unify
The other answers are correct
___ Balance = Income - Payments related to earned income and capital income (dividends and interest)
Income
Financial
Capital
If the current account balance is positive (Income higher than payments), the country is said to have a current account ___
The other answers are correct
Surplus
Deficit
If the joint balance of the current account and capital account is positive ___
We are in debt with the rest of the world
The rest of the world is in debt to us
The other answers are correct
The debt capacity of a country ___ a limit
The other answers are correct
Doesn't have
Has
A capital ___ occurs when a national resident buys a foreing financial asset
Inflow
The other answers are correct
Outflow
What is the correct formula?
Financial Account = Sales of domestic assets - Purchases of foreign assets
Financial Account = Sales of foreign assets - Purchases of domestic assets
The other answers are correct
Foreign deposits in Spain are a capital ___
Inflow
Outflow
The other answers are correct
When Spain invest abroad Spain becomes a ___ of the country in which it invest
Debtor
Creditor
The other answers are correct
When the balance of the financial balance is negative, Spain becomes a ___ country of the rest of the world
The other answers are correct
Debtor
Creditor
When Spain imports a car to the United States and pays for the car with a check for €20,000, when we are paying euros we are "___" euros
Selling
Buying
The other answers are correct
Suppose that Spain exports wine to the United States for an amount of $15,000. The wine company has received a check for $15,000 which is exchanged at the Central Bank for euros. Therefore, the Central Bank is buying dollars in exchange for euros, ___ thus the assets of the United States in the hands of Spain
The other answers are correct
Increasing
Decreasing
Suppose that Spain buys shares in an American company. This operation is recorded with a ___ sign in the Financial Account
Positive
Negative
The other answers are correct
A ___ balance in the Reserves Variation item indicates that foreigh assets in the hands of the Central Bank are increasing
The other answers are correct
Positive
Negative
The ___ exchange rate is the price in foreign currency of a unit of a national currency
Nominal
Simple
The other answers are correct
A ___ exchange rate is used as a means to control inflation
Floating
Fixed
The other answers are correct
A central bank could, for example, allow the price of a currency to float freely between ___
An upper and lower limit
The other answers are correct
A ceiling and floor price
If the euro/dollar exchange rate increases in the eurozone, imports ___
The other answers are correct
Increase
Decrease
In a country with the gold standard system, if domestic prices decrease, exports ___
Increase
Keep
Decrease
Some people hold the view that fluctuations in the amount of gold being mined contributed to the severity and duration of the ___
Financial Crisis
Great Depression of 1930s
The other answers are correct
In the IMF system, if the Central bank increases the supply of dollars, the euro/dollar exchange rate ___
Keeps
Increases
Decreases
Globalization, since the World War ___, is largely the result of planning by politicians to break down trade-difficult borders to increase prosperity and interdependence and, consequently, decrease the possibility of a future war
II
I
III
Since WWII, capital controls have been ___
The other answers are correct
Lowered
Increased
The Maastrich Treaty was approved in ___
1990
1991
1992
The interconectivity of markets means that an economic collapse in any given country ___ be contained
Can't
Can
The other answers are correct
About ___ of all Internet traffic uses English language
80%
50%
5%
One of the ___ effects of globalization is offshoring
The other answers are correct
Positive
Negative
The challenge for Andalusia in the future is to ___ its dependence on the export of energy products