Question: Which government policy restricts currency convertibility?

Answer: Approval by a country’s central bank

Question: One simple form of countertrade is​ ________, in which goods are exchanged for others of equal value.

Answer: barter

Question: Companies can be better skilled at managing foreign exchange by doing which one of the following?

Answer: working with major banks

Question: As many countries abandoned central planning and socialist-style economics, the pace of privatization _______ worldwide.

Answer: accelerated

Question: The international capital market consists of the ______, ______, and ________.

Answer: International bond, international equity, Eurocurrency markets

Question: A ________ is a country or territory whose financial sector features very few regulations and few, if any, taxes.

Answer: Offshore financial center.

Question: The exchange rate depends on which one of the following?

Answer: The size of the transaction

Question: Which one of the following is a characteristic of micro-finance?

Answer: Most borrowers are women.

Question: Which one of the following is a source of deposits for the Eurocurrency market?

Answer: International companies with excess cash

Question: Which one of the following fulfills the purpose of a national capital market?

Answer: To provide a mechanism to invest money efficiently