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1. Define the terms Balance of Trade, Balance of Payment, and Exchange Rate (Hard and Soft
Currencies) 2. What is the role of the International Monetary Fund (IMF) and the World Bank?
3. Define the terms Balance of Trade and Balance of Payments. 4. What is meant by when a
country has a favorable and an unfavorable balance of trade? 5. What is meant when a country
has a surplus or a deficit in its balance of payments? 6. What actions can a country take to correct
a balance of payment deficit? 7. What is the current role of the International Monetary Fund and
World Bank?

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