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Exam (elaborations)

FIN 4120 Test 1 Study Guide Solutions

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FIN 4120 Test 1 Study Guide Solutions business cycle - Ans:-Fluctuations in economic activity, such as employment and production Tracks real GDP overtime Eurocurrencies - Ans:-domestic currencies of one country on deposit in a second country Disinflation - Ans:-a general rise in prices but at a...

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  • October 23, 2024
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  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • 2024/2025
  • 2024/2025
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FIN 4120 Test 1 Study Guide Solutions


business cycle - Ans:✔✔-Fluctuations in economic activity, such as employment and production




Tracks real GDP overtime


Eurocurrencies - Ans:✔✔-domestic currencies of one country on deposit in a second country


Disinflation - Ans:✔✔-a general rise in prices but at a slower rate


quantitative easing - Ans:✔✔-when the Fed buys longer-term government bonds or other securities in

the market to stimulate economy


balance of payments - Ans:✔✔-a summary statement of the flow of economic transactions between

residents of different countries over time


4 Components of BOP - Ans:✔✔-1. Current account


2. capital account


3. Official reserves



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, ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED

FIRST PUBLISH OCTOBER 2024




4. Errors and Omissions


Current Account - Ans:✔✔-1. Imports & Exports of goods


2. Imports & Exports of Services


3. Investment Income


4. Unilateral Transfers


Investment Income - Ans:✔✔-project income from investment made in another country




ex: VW in Chatt


unilateral transfers - Ans:✔✔-aid sent to countries, one way inflow/outflow


trade deficit - Ans:✔✔-more imports than exports


trade surplus - Ans:✔✔-more exports than imports


US biggest trading partners - Ans:✔✔-1. Canada


2. China


3. Mexico



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