Question：In translating the statement of financial position of a company from local currency to sterling, which rate should be used to translate non-monetary items stated at historic cost?

　　A. The rate of exchange which produces the lowest valuation in the year.

　　B. The rate of exchange at the date of the original transaction.

　　C. The weighted average exchange rate for the reporting period.

　　D. The closing rate on the statement of financial position.

　　The correct answer is: The rate of exchange at the date of the original transaction.

　　Question：A __________ establishes a free trade area between member states, and also erects common external tariffs to charge on imports from non-member countries.

　　What is the missing phrase?

　　A. Common Market

　　B. Preferential Trade Area

　　C. Customs Union

　　D. Free Trade Area

　　The correct answer is: Customs Union.

　　A Customs Union promotes free trade among member states while acting as a protectionist bloc against non-member states.