Module 2 Vocabulary

Question 1

The difference in total value between payments into and out of the country over a period of time

Answer 1

balance of payments

Question 2

When a country’s currency value is fixed or pegged by a monetary authority against the value of another currency, a basket of currencies, or another measure of value

Answer 2

fixed rate currency exchange system

Question 3

Something pledged as security for repayment of a loan to be forfeited in the event of a default

Answer 3

Collateral

Question 4

The removal of regulations or restrictions in a particular industry

Answer 4

Deregulation

Question 5

Selling government holdings to private companies

Answer 5

Privatization

Question 6

The highest possible rating that may be assigned by a credit rating agency for a bond

Answer 6

AAA ratings

Question 7

A tool used by a company or any other entity to raise money or capital

Answer 7

Debt Instruments

Question 8

A WTO agreement that governs all IP laws and protects intellectual property rights for global businesses.

Answer 8

TRIPS (Trade-Related Aspects of Intellectual Property Rights)

Question 9

A raw material or primary agricultural product that can be bought or sold

Answer 9

Commodities