GMAT Reading Comprehension 2

The primary purpose of the passage is to:

explain the causes of a trade deficit.

argue that trade deficits have no effect on currency values.

describe a new economic theory about currency valuation.

challenge a conventional economic theory by introducing alternative factors.

compare and contrast the trade policies of different nations.

Correct! Wrong!

According to the orthodox economic theory described in the first paragraph, a trade deficit would be expected to lead to:

an increase in a country's exports.

a rise in the value of the country's currency.

a decrease in the demand for a country's imports.

a surge in foreign investment.

an increase in the international supply of a country's currency.

Correct! Wrong!

The author mentions "investors seeking a safe haven" in order to:

provide an example of a factor that could lead to a trade surplus.

illustrate a situation in which a country's currency value is determined by factors other than its trade deficit.

suggest that a strong currency is a prerequisite for attracting foreign investment.

argue that foreign investment is the most important factor in currency valuation.

explain why some countries are able to attract more foreign investment than others.

Correct! Wrong!

Which of the following, if true, would most strengthen the orthodox economic theory as it is described in the passage?

A major global economic crisis causes a sharp increase in the value of the U.S. dollar.

A country with a balanced trade account sees its currency value remain stable over a decade.

A nation with a large and growing trade deficit experiences a steady decline in its currency's value over several years.

A study finds that consumer preferences for domestic goods have a greater impact on trade balances than previously thought.

A country with a large influx of foreign investment sees its currency's value fall despite a balanced trade account.

Correct! Wrong!

The author's attitude toward the orthodox economic theory can be best described as:

dismissive and critical.

neutral and objective.

supportive but with some reservations.

respectful but skeptical.

apathetic and uninterested.

Correct! Wrong!

GMAT Reading Comprehension 2

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GMAT Reading Comprehension 2

The primary purpose of the passage is to:

According to the orthodox economic theory described in the first paragraph, a trade deficit would be expected to lead to:

The author mentions "investors seeking a safe haven" in order to:

Which of the following, if true, would most strengthen the orthodox economic theory as it is described in the passage?

The author's attitude toward the orthodox economic theory can be best described as:

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Ambreena

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The primary purpose of the passage is to:

According to the orthodox economic theory described in the first paragraph, a trade deficit would be expected to lead to:

The author mentions "investors seeking a safe haven" in order to:

Which of the following, if true, would most strengthen the orthodox economic theory as it is described in the passage?

The author's attitude toward the orthodox economic theory can be best described as:

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About the author

Ambreena

Leave a Comment X