14.If a country has a balance of payment deficit, this means:

A) It exports less goods than it imports

B) It exports less goods and services than it imports

C) Its transfers send abroad exceed the transfers received

D) The sum of its goods exports, service exports, and transfers received is less than the sum of is goods imports, service imports, and transfers sent.

15.What was established in the Bretton Woods agreement of 1944?

A) The International Monetary Fund and the World Bank

B) The European Exchange Rate System and the European Central Bank

C) The United Nations

D) None of the above institutions

16.Which of the following activities would reduce a companys exposure to exchange rate risk?

A) Buying supplies in the country to which it exports

B) Invoicing for services in ones own currency

C) Exporting to a wide range of different currency areas

D) All of the above measures reduce exchange rate risk