11.All of the following are examples of protectionism except

a. most favoured nation treatment

b. voluntary export restraints

c. tariffs

d. dumping

12.Which of the following is a debit?

a. The export of goods

b. The export of services

c. Transfer payments given to foreigners

d. Capital inflows

13.Which is not a function of the foreign exchange market?

a. to transfer funds from one nation to another

b. to finance trade

c. to diversify risks

d. to provide the facilities for hedging

14.A shortage of pounds under a flexible exchange rate system results in:

a. a depreciation of the pound

b. a depreciation of the dollar

c. an appreciation of the dollar

d. no change in the exchange rate

15.An effective exchange rate is a:

a. spot rate

b. forward rate

c. flexible exchange rates

d. weighted average of the exchange rates between the domestic currency and the nation's

most important trade partners