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International Flow of Funds

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Questions and Answers

What is the primary goal of international flow of funds?

To promote economic development in underdeveloped countries

To stabilize the value of currencies

To maximize profits for multinational corporations

To facilitate the exchange of goods and services between countries (correct)

What is the term for the movement of capital from one country to another?

Portfolio investment (correct)

Foreign direct investment

Capital flight

International trade

Which of the following is NOT a type of international flow of funds?

Portfolio investment

Foreign direct investment

Foreign aid

Bartering (correct)

What is the purpose of international flow of funds in a country's economy?

<p>To promote economic growth and development</p> Signup and view all the answers

What is the impact of international flow of funds on a country's balance of payments?

<p>It reduces the country's current account deficit</p> Signup and view all the answers

Study Notes

International Flow of Funds

International flow of funds refers to the movement of money across international borders
This movement involves the exchange of goods, services, and assets between countries
It has a significant impact on a country's economy, influencing its balance of payments, exchange rates, and economic growth

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Description

Test your understanding of international flow of funds, including its concepts, theories, and applications. This quiz covers the key aspects of international flow of funds and its significance in the global economy.