Question

Question 1)

Which of the following are not an instrument of a country's trade policy? (select any that apply)

	1.	The Current Account
	2.	Tariffs
	3.	Preferential Duties
	4.	Most Favored Nations status

Question 2)

The economic integration of Europe happened in the last ten years, i.e., since the great recession of 2008-09.

True

False

Question 3)

Countries that have high tariffs and other non tariff barriers are said to be practicing Protectionism.

True

False

Question 4)

The current Euro/dollar spot exchange rate is 1.10 dollars to each Euro. The forward rate i.e., the Euro/dollar rate in 60 days is 1.20 dollars to each Euros. In this example the US dollar is said to be .........

	1.	Depreciating against the Euro
	2.	Appreciating against the Euro
	3.	In equilibrium with the Euro
	4.	dollar has a surplus visa vie the Euro

Answer 1

Answer 1 Current Account

Current account is a part of Balance of Payment account of a country not a trade policy

Answer 2 False

The financial crisis of 2008-09 has adversly affected the EU and resulted in dis-integration of EU

Answer 3 True

Protectionism means imposing of high tariff and non tariff barriers to protect the local industries.

Answer 4  

The price of euro is increasing in terms of dollar. It means it needs more dollar to buy the same amount of euro. Thus dollar is depreciating against euro.