chapter 2

Question 1

it consists of topics like currency exchange rates and monetary policy

Answer 1

international finance

Question 2

it refers to the study of the behavior of households, individuals, and firms with respect to the allocation of resources and decision-making.

Answer 2

concept of microeconomics

Question 3

a branch of economics that studies how people make decisions, what factors affect their decision, and how this decision affect the price, demand, and supply of goods in the market.

Answer 3

microeconomics

Question 4

is an american multinational investment bank and financial services company, founded in 1869

Answer 4

The Goldman Sachs Group Inc.

Question 5

is the second largest investment bank in the world by revenue and its ranked 55th on the Fortune 500 list

Answer 5

the goldman sachs group inc

Question 6

is an American multinational financial services firm headquartered in New York and Incorporated in Delaware. It is the largest bank in the United States and the world’s largest bank by market capitalization.

Answer 6

JP Morgan Chase & Co.

Question 7

________ traces its roots to J.P Morgan & Co. following the Glass-Steagall Act. It was no longer possible for a corporation to have investment banking and commercial banking businesses under a single holding entity.

Answer 7

Morgan Stanley

Question 8

taking place between top economies in the world help in the continuance of the global economy.

Answer 8

International Transaction

Question 9

includes the exchange of a variety of products between countries.

Answer 9

international trade

Question 10

________ refers to the proportionate saving in costs gained by and increase level of production.

Answer 10

Economies of Scale

Question 11

____ is an excellent method for countries to exchange goods and services. It also allows countries to specialize in the production of those goods in which they have a comparative advantage.

Answer 11

free trade

Question 12

Increased migration of the labor force is advantageous for the recipient country as well as for the workers. This also helps in reducing geographical inequality.

Answer 12

Movement of labor

Question 13

we can understand the importance of global economy by looking at it in relation to ___.

_ one of the primary engines of world economic growth.

same answer

Answer 13

emerging markets

Question 14

________: Due to presence of global economy, it has become easier for countries to attract short-term and long-term investment.

Answer 14

Increased Investment

Question 15

the _ of globalization is what has been called triumph of liberalism/capitalism

Answer 15

ideological dimension