BUSI 303 Quiz 3 Global Financial Markets, Monetary Systems, & REI solutions complete answers

BUSI 303 Quiz 3 Global Financial Markets, Monetary Systems, & REI solutions complete answers

 

The OTC Market has gradually evolved into the largest, fastest, and most flexible currency trading market in the world.

 

Usually facilitate a connection between two anonymous parties that are willing to trade?

 

Three major events resulted from the __________: (1) the establishment of a fixed exchange rate system, (2) the International Monetary Fund, and (3) the World Bank.

 

The law of volatility states that similar goods or commodities in different countries should remain at the same price after conversion of currencies according to current exchange rates.

 

On August 15, 1971, President Richard Nixon completely ended the _________:

 

In the United States, the _____________ is responsible for regulating the growth of the economy, which is accomplished by the increase or decrease of money supply.

 

The 1930Fordney-McCumber Act raised U.S. tariffs to historically high levels.

 

Generally the market makers on the foreign exchange

 

The reasons that global financial markets are important to borrowers.

 

Wholesale conditions of pricing between major financial institutions, as well as to the circle of the largest banks that participate in FX trade under wholesale conditions.

 

The European Community established its Exchange Rate Mechanism (ERM) in 1979 and formed the initial steps for the creation of a single European currency.

 

If a currency price is expected to rise in the future, what is the higher price a buyer pays?

 

The difference between a spot rate and a forward rate is termed the

 

A pegged exchange rate is an exchange rate that is freely determined by the interaction of supply and demand.

 

The major difference between the currency futures market and the OTC market is that futures settle gains and losses on a daily basis through the margin mechanism.

 

The reasons that global financial markets are important to lenders.

 

Use the FX market to facilitate international business activities.

 

Primary guardians of national currencies and usually responsible for setting monetary policy and exchange rate policy.

 

Participation is voluntary, but before qualifying to adopt the Euro, a country must participate in the _______ as one of the convergence criteria for entry.

 

The membership requirements for the European Monetary Union (EMU) are based on the convergence criterion: Price Stability, Sound Public Finance, Sustainable Public Finances Commodity Durability Convergence and Exchange Rate Stability.

 

It was established and launched in 1972 by the Chicago Mercantile Exchange for the purpose of developing future trade in financial products. 

 

Called for the development of a European Union that utilized the existing offices of the European Community, supplemented by new intergovernmental offices on foreign and security policy, home affairs, and justice. 

 

The role of the _______________ is to supervise the exchange rate practices of member countries and to encourage the free convertibility of any national money into the monies of other countries. 

 

The majority of transactions on the FX include operations with the Euro, where one party sells or buys dollars using other world currencies. 

 

Was created to promote general economic development. Provides loans in addition to technical expertise to developing countries at more favorable terms than commercial lenders 

 

The SACU was established as a common market with the goals to maintain the free interchange of goods between signatory nations and provide for a common external tariff and a common excise tariff?

 

In 1989, Mexican President Carlos Salinas invited United States President Bill Clinton to organize a trade agreement, CUSFTA, that would increase investment and decrease tariffs between the U.S., Mexico, and Canada.

 

Some illustrative negotiations issues include the rights of citizens, free movement of labor, continuation contribution to the EU budget, Trade, settlement of current debts to the EU, & the Irish border

 

Is the executive body of the EU, consisting of twenty-five commissioners and originating from each member state and several thousand supporting civil servants; it drafts and implements legislation and enforces existing treaties.

 

Article 50 of the European Union's Treaty of Lisbon governs

 

Is comprised of the following nations: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.

 

Which of the following is the order of the stages of regional economic integration?

 

The three pillars of the 2000 Lomé Convention are development cooperation, trade, and political dimensions.

 

Interprets European Law and adjudicates in areas of dispute. It examines and decides on claims brought by the European Commission against member states for noncompliance with EU laws or directives.

 

Which of the following countries is NOT a founding member of APEC?

 

The GCC operates as a common market, granting national treatment to all GCC firms and citizens in any other GCC country, as well as removing all barriers to cross country investment and services trade.

 

Compared to a nonparticipating nation, a participating nation in a regional trading bloc benefits from the established trade agreement, as a result of greater bargaining power.

 

Was formed in 1975 and has faced problems in uniting the region including lack of infrastructure, non-diverse economies, and political instability?

 

It passes EU law; approves the EU budget; and seeks to coordinate the adoption of common economic, defense, and judicial policies across the EU.

 

Trading blocs can provide protection from global competitiveness.

 

Includes Burma, Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam. The goal is to attain economic, social, and cultural aims through joint endeavors, collaboration, and assistance. They show mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations.

 

OPEC was founded in 1960 in Baghdad.

 

Is responsible for monetary policy for the Euro, the official currency of the Eurozone, and sets interest rates across the participating members.

 

Was established in 1991 with the intent of increasing the competitiveness of its five-member nations’ economies through the use of research on economic development. Full-member nations include Argentina, Brazil, Paraguay, Uruguay, and Venezuela (suspended since 2016).

 

All EU members are obliged to adopt the Euro as their national currency. Great Britain and France have an opt-out option under the terms of the Maastricht Treaty.

 

Agreement establishes an investor-state dispute settlement mechanism and lowers both tariff and non-tariff barriers to trade; the United States formally withdrew in 2017. 

 

Established with the Treaty of Chaguaramas in 1973 with the following affiliated institutions: Court of Justice, Development Bank, University of Guyana and West Indies. 

 

Is a customs union founded in 1969 with the Agreement of Cartagena between Bolivia, Peru, Ecuador, and Chile?

 

Was established in the 1952. Elections are held every five years, and all registered EU citizens are allowed to vote.

 

Was established in 1960 between Guatemala, El Salvador, Honduras, and Nicaragua. Organization collapsed in 1969 because of the Futbol War; however, it was reinstated in 1991.

 

Was established in 1960 as an economic counterpart to the North Atlantic Treaty Organization (NATO). The objective of the organization is increasing economic welfare through the world by covering issues associated with social work and economic efforts within participating governments and nonparticipating governments. 

 

To become a member state, a prospective country needs to fulfill political and economic preconditions known as the Copenhagen Criteria. This requires a democratic and secular government, an independent judiciary, and corresponding personal freedoms. 

 

Founded in 1968 and include the creation of four companies that operate with their board of directors: AMPTC, ASRY, APICORP, and APSCO.