International Monetary Organizations Quiz

10 Questions

Match the international organization with its location:

International Monetary Fund (IMF) = Washington, D.C. Bank of International Settlements (BIS) = Basel, Switzerland United States = Washington, D.C. Japan = Basel, Switzerland

Match the country with its role in the Bank of International Settlements (BIS):

United States = Major role West Germany = Major role Japan = Major role France = Minor role

Match the type of transaction with its accounting entry:

Foreign currency earned = Credit entry Foreign currency paid out abroad = Debit entry Domestic currency earned = Debit entry Domestic currency paid out abroad = Credit entry

Match the financial term with its representation in accounting records:

Debit entry = Minus sign Credit entry = No sign Balance of payments surplus = Credit balance Balance of payments deficit = Debit balance

Match the decision requirement with the currency adjustment action:

Consult IMF in Washington, D.C. = Currency devaluation or revaluation over 10% Advise BIS in Basel, Switzerland = Currency devaluation or revaluation under 10% Seek approval from G10 countries = Currency stabilization Implement independent currency policy = Currency pegging

Match the following terms with their correct definitions:

F.O.B. = Free on board, excluding additional costs after leaving the port Invisible transactions = Trade transactions without physical documents as evidence Investment income = Covering dividends and interest on loans Current account = Combination of trade balance and invisible transactions

Match the following scenarios with their correct accounting entries:

Exporting goods = Foreign exchange earned, credit entry Importing goods = Foreign exchange lost, debit entry Receiving dividends from abroad = Foreign exchange earned, credit entry Extending a loan to another country = Outflow of funds, debit entry

Match the following items with their correct classification in the balance of payments:

Transportation and travel expenses = Invisible transactions Military expenditures = Invisible transactions Exports and imports = Trade balance Dividends and interest on loans = Investment income

Match the following terms with their effects on the balance of payments:

American soldier buying beer in West Germany = Invisible transaction affecting the balance Trade balance register exports and imports = Net difference between exports and imports Receiving dividends from abroad = Foreign exchange earned, credit entry Extending a loan to another country = Debit item registered on the balance of payments

Match the following concepts with their proper explanations:

Trade balance = Difference between a country's exports and imports Credit entry in foreign exchange transactions = Represents earning foreign exchange Debit entry in foreign exchange transactions = Represents loss of foreign exchange Investment income from abroad = Includes dividends and interest on loans

Test your knowledge on the International Monetary Fund (IMF) and the Bank of International Settlements (BIS), including their roles in international monetary affairs and currency adjustments.