Caribbean Trade & Payments Quiz

Froggy Jumps

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Test your grasp of balance of payments and trade concepts.

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Montex

Canada

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Froggy Jumps Caribbean Trade & Payments QuizOnline version Test your grasp of balance of payments and trade concepts. by Montex 1 What is the balance of trade a sum of in the balance of payments? a The balance of goods and services b The official reserves only c The capital flows only 2 Which account records investment by residents abroad and foreigners in the country? a The Official Reserves Account b The Capital Account c The Current Account 3 What policy reduces a deficit by lowering imports through higher interest rates? a Expenditure-switching policy b Deflationary monetary policy c Inflationary policy 4 What is a tariff? a A tax on imported goods b A subsidy for exporters c A limit on imports 5 Which term means a country’s currency value rises due to demand? a Depreciation b Appreciation c Devaluation 6 What does devaluation do to imports and the trade balance? a Lowers imports and can reduce a deficit b Has no effect on imports c Increases imports and widens a deficit 7 What is the Theory of Comparative Advantage about? a Specialising in the good with the lowest opportunity cost b Producing all goods domestically c Avoiding trade entirely 8 Which entity regulates and facilitates global trade among nations? a Organization of Petroleum Exporting Countries (OPEC) b International Monetary Fund (IMF) c World Trade Organisation (WTO) 9 Which symbol describes a deficit when outflows exceed inflows? a Visible balance only b Balance of payments deficit c Trade balance surplus 10 What happens in a balance of payments surplus to exchange rates? a Exchange rate depreciation b No change in rate c Exchange rate appreciation

Froggy Jumps

Caribbean Trade & Payments QuizOnline version

Test your grasp of balance of payments and trade concepts.

by Montex

What is the balance of trade a sum of in the balance of payments?

The balance of goods and services

The official reserves only

The capital flows only

Which account records investment by residents abroad and foreigners in the country?

The Official Reserves Account

The Capital Account

The Current Account

What policy reduces a deficit by lowering imports through higher interest rates?

Expenditure-switching policy

Deflationary monetary policy

Inflationary policy

What is a tariff?

A tax on imported goods

A subsidy for exporters

A limit on imports

Which term means a country’s currency value rises due to demand?

Depreciation

Appreciation

Devaluation

What does devaluation do to imports and the trade balance?

Lowers imports and can reduce a deficit

Has no effect on imports

Increases imports and widens a deficit

What is the Theory of Comparative Advantage about?

Specialising in the good with the lowest opportunity cost

Producing all goods domestically

Avoiding trade entirely

Which entity regulates and facilitates global trade among nations?

Organization of Petroleum Exporting Countries (OPEC)

International Monetary Fund (IMF)

World Trade Organisation (WTO)

Which symbol describes a deficit when outflows exceed inflows?

Visible balance only

Balance of payments deficit

Trade balance surplus

What happens in a balance of payments surplus to exchange rates?

Exchange rate depreciation

No change in rate

Exchange rate appreciation

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Caribbean Trade & Payments Quiz

Froggy Jumps

About this activity

Created by

Download the paper version to play

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Caribbean Trade & Payments QuizOnline version

by Montex

What is the balance of trade a sum of in the balance of payments?

Which account records investment by residents abroad and foreigners in the country?

What policy reduces a deficit by lowering imports through higher interest rates?

What is a tariff?

Which term means a country’s currency value rises due to demand?

What does devaluation do to imports and the trade balance?

What is the Theory of Comparative Advantage about?

Which entity regulates and facilitates global trade among nations?

Which symbol describes a deficit when outflows exceed inflows?

What happens in a balance of payments surplus to exchange rates?

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