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RT It MC QUFSTIONS (10 marks 0.5 mark each) Choose the suitable wordlphrase from the following 1. Balance of Payments is an accounting statement that roconds moestary transactions between A. Saudi Residents and foreign resident of the rest of the werld. B. Saudi Citizens and foreign residents in Saodi Arabia. C. Only foreign resident in Saudi Arabia and foreign residents of other countries. D. None of the above 2. Forward exchange rates A. Involve the inmediate exchange of currencies. B. Involve the exchange of currencies at some spectified future date. C. Involve the immediate exchange of imports and exports. D. None of the above. 3. If an identical preduct (the same) can be sold in two different markets, and no restrictions exist on the sale or transportation costs, the product's price shoul 1 be the same in both markets. This is known as: A. relative purchasing power parity. B. interest rate parity. C. the law of one price. D. equilibrium. 4. The price of one currency in term of anoeher currency is defined as A. Swap rate B. Spare rate C. Exchange rate D. Change rate 5. The components of a Balance of Payment accoumt are A. Capital Account B. Current Account C. Both a and b D. None of the above 6. When the value of the British pound changes from $1.50 to $1.25, the pound has and the dollar has A. appreciated; appreciated B. depreciated; appreciated C. appreciated; depreciated D. depreciated; depreciated

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