1. 5. Match each concept in Column A with a definition or example in Column B.

Column A Column B

a. Tariff 1. Makes international incomes comparable by accounting for differences in the cost of living

b. Current account 2. A rise in the value of a currency in a floating exchange rate system

c. Currency appreciation 3. An organization charged with providing loans for development

d. Purchasing power parity adjustment 4. Investing in a foreign business

e. Balance-of-payments crisis 5. Tracks flows arising from trade, earnings, and transfers

f. Quota 6. A tax put on an internationally traded item g. Nontariff barriers to trade 7. When a country runs short of foreign exchange h. World Bank 8. A rise in the value of a currency under a fixed exchange rate system i. International Monetary Fund 9. Using measures such as standards and licensing to restrict trade j. Capital controls 10. When a central bank buys or sells foreign exchange k. Revaluation 11. A fall in the value of a currency under a floating exchange rate system l. Foreign direct investment m. Currency depreciation n. Foreign exchange market intervention 12. Putting a quantity limit on imports or exports 13. Government intervention to reduce or eliminate international capital flows 14. An organization charged with overseeing international finance