26. ____ is (are) income received by investors on foreign investments in financial assets (securities). a.Portfolio incomeb.Direct foreign incomec.Unilateral transfersd.Factor incomeANS: D PTS: 1 27. A weak home currency may not be a perfect solution to correct a balance of trade deficit because: 28. Intracompany trade makes up approximately ____ percent of all international trade. 29. Like the International Monetary Fund (IMF), the ____ is composed of a collection of nations as members. However, unlike the IMF, it uses the private rather than the government sector to achieve its objectives.
30. The World Bank's Multilateral Investment Guarantee Agency (MIGA): a.offers various forms of export insurance.b.offers various forms of import insurance.c.offers various forms of exchange rate risk insurance.d.provides loans to developing countries.e.offers various forms of political risk insurance.ANS: E PTS: 1 31. Also known as the "central banks' central bank," the ____ attempts to facilitate cooperation among countries with regard to international transactions and provides assistance to countries experiencing a financial crisis. 32. Direct foreign investment into the U.S. represents a ____. 33. A balance-of-trade surplus indicates an excess of imports over exports. 34. A weakening of the U.S. dollar with respect to the British pound would likely reduce the U.S. exports to Britain and increase U.S. imports from Britain over time. a. Trueb. FalseANS: F PTS: 1 35. The World Bank extends loans only to developed nations, while the International Development Association (IDA) extends loans only to developing nations.
36. The World Bank frequently enters into cofinancing agreements. Under these agreements, financing is provided by the World Bank and/or official aid agencies, export credit agencies, or commercial banks.
You've reached the end of your free preview.
Want to read all 14 pages?