Question 20(1 point)

1.Which of the following statements isnottrue about a currency contract in the futures markets?

Question 20 options:

a)

the issuer of a currency contract in the futures market is a commercial bank.

b)

the size of the currency contract in the futures market is standardized in round lots.

c)

the date of delivery is not negotiable and must be some particular dates.

d)

b+c

2.Suppose France, a WTO member, decides to reduce its tariffs on imported cars from Australia, also a WTO member. By principle of -----------France has to apply the same tariff reduction to cars exported by other WTO members.

Question 19 options:

a)

national treatment

b)

Most Favoured nation

c)

a+b

d)

None of the above statements are correct.

3.Following the creation of a free trade agreement (FTA)the members of the newly created FTA may suffer because they have to buy products from other FTA members when cheaper sources are often available from non-member countries. Which of the following concepts trade economists use to describe the situation above?

Question 18 options:

a)

thenon-tariff effect

b)

the trade creation effect

c)

the trade diversion effect

d)

None of the above concepts are correct

4.The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization have resulted in:

Question 2 options:

a)

the establishment of the European Union (EU).

b)

reductions in trade barriers via multilateral negotiations.

c)

the Washington consensus.

d)the International Monetary Fund (IMF).

5.Which of the following statements best describes the difference between international trade in goods and international trade in services?

Question 9 options:

a)

The producer and the consumer involved in an international transaction of a good generally must be in the same location while the producer and the consumer involved in an international transaction of a service generally must not be in the same location.

b)

The producer and the consumer involved in an international transaction of a good generally must not be in the same location while the producer and the consumer involved in an international transaction of a service generally generally must be in the same location.

c)

The producer and the consumer involved in an international transaction of a good generally must not interact with each other at the same time while the producer and the consumer involved in an international transaction of a service generally must interact with each other at the same time.

d)

b+c.