Problems of Global Finance
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10. If a country's government imposes a tariff on imported goods, that country's current account balance will likely __________ (assuming no retaliation by other governments).
a. decrease
b. increase
c. remain unaffected
d. either A or C are possible
12. The U.S. typically has a balance-of-trade surplus in its trade with __________ .
a. China
b. Japan
c. A and B
d. none of the above
30. The phrase "the dollar was mixed in trading" means that:
a. the dollar was strong in some periods and weak in other periods over the last month.
b. the volume of trading was very high in some periods and low in other periods.
c. the dollar was involved in some currency transactions, but not others.
d. the dollar strengthened against some currencies and weakened against others.
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This solution answers various problems of global finance.
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10. If a country's government imposes a tariff on imported goods, that country's current account balance will likely __________ (assuming ...
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