Q1.

1.The gravity model of international trade predicts that trade between two nations is larger a. the larger the two nations b. the closer the nations c. the more open are the two nations d. all of the above 2.International economics deals with: a. the flow of goods, services, and payments among nations b. policies directed at regulating the flow of goods, services, and payments c. the effects of policies on the welfare of the nation d. all of the above 3.International trade theory refers to: a. the microeconomic aspects of international trade b. the macroeconomic aspects of international trade c. open economy macroeconomics or international finance d. all of the above Which of the following is not the subject matter of international finance? a. foreign exchange markets b. the balance of payments c. the basis and the gains from trade d. policies to adjust balance of payments disequilibriaAssignment IX Match the following assertions with their meanings below. Existence or Occurrence Completeness w Accuracy 4. Cutoff 5. Classification 6. Ownership, Rights, and Obligations 7. Valuation and Allocation TASK (a) Amounts in the financial statements reflect reasonable estimates. (b) Transactions are posted properly and balances are shown in the correct accounts. (c) Recorded transactions and account balances are valid. (d) The financial statements reflect numbers that are correctly calculated. (e). All transactions and account balances have been included in the financial records. (f) All assets and liabilities shown in the financial statements actually belong to the company. (g) All transactions are recorded in the proper time period