https://browsegrades.net/singlePaper/416756/testbank-an
,https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-bus
Multinational Business Finance, 16e (Eiteman/Stonehill/Moffett)
ss ss ss ss
Chapter 1 Multinational Financial Management: Opportunities and Challenges
ss ss ss ss ss ss
1.1 The Global Financial Marketplace
ss ss ss
1) Financial globalization has NOT resulted in: ss ss ss ss ss
A) continuing imbalances of balance of payments. ss ss ss ss ss
B) an increase in quantity and speed in the flow of capital across the world.
ss ss ss ss ss ss ss ss ss ss ss ss ss
C) capital markets less open and a decrease in the availability of capital for many organizations.
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D) uniform ways of ownership, control, and governance across the
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world.Answer: D
ss s s
Diff: 1 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
2) Financial globalization has NOT resulted in: ss ss ss ss ss
A) continuing imbalances of balance of payments. ss ss ss ss ss
B) an increase in quantity and speed in the flow of capital across the world.
ss ss ss ss ss ss ss ss ss ss ss ss ss
C) capital markets more open and an increase in the availability of capital
ss ss ss ss ss ss ss ss ss ss ss
for manyorganizations.
ss ss
D) an increase in the flow of capital into and out of
ss ss ss ss ss ss ss ss ss ss
industrialized markets.Answer: C
ss ss s s
Diff: 1 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
3) The institutions of global finance are:
ss ss ss ss ss
A) central banks. ss
B) commercial banks. ss
C) investment banks. ss
D) All of the above are institutions of
ss ss ss ss ss ss
global finance.Answer: D
ss ss s s
Diff: 1 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
1
Copyright © 2023 Pearson Education, ss ss ss ss
Inc.
,https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-bus
4) A major cost avoided in the eurocurrency markets is the payment of deposit
ss ss ss ss ss ss ss ss ss ss ss ss
insurance fees,such as:
ss ss ss
A) Federal Deposit Insurance Corporation — FDIC. ss ss ss ss ss
B) Office of the Comptroller of the Currency — OCC.
ss ss ss ss ss ss ss ss
C) International Monetary Fund — IMF. ss ss ss ss
D) World Bank — ss ss
WB.Answer: A
ss s s
Diff: 2
ss ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
5) The modern eurocurrency market was born shortly after:
ss ss ss ss ss ss ss
A) World War II. ss ss
B) World War I. ss ss
C) Korean War. ss
D) Bosnian
War.Answer
ss
:
A Diff: 1
ss ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
6) The reference rate of interest in the eurocurrency market is the:
ss ss ss ss ss ss ss ss ss ss
A) London Interbank Offered Rate. ss ss ss
B) Prima rate. ss
C) Federal funds rate. ss ss
D) Treasury
rate.Answer
ss
:
A Diff: 1
ss ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
7) Interest spreads in the eurocurrency market are small for many reasons EXCEPT:
ss ss ss ss ss ss ss ss ss ss ss
A) Eurocurrency loans are secured loans. ss ss ss ss
B) Eurocurrency deposits and loans are made in amounts of $500,000 or more on ss ss ss ss ss ss ss ss ss ss ss ss
an unsecuredbasis.
ss ss s
C) The eurocurrency is a wholesale market.
ss ss ss ss ss
D) Borrowers are usually large corporations or government ss ss ss ss ss ss
entities.Answer: A
ss s s s
Diff: 2 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
2
Copyright © 2023 Pearson Education,
ss ss ss ss
Inc.
, https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-bus
8) Multinational enterprises (MNEs) are firms, both for-profit companies and not-for-
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profit organizations, that have operations in more than one country, and conduct their
ss ss ss ss ss ss ss ss ss ss ss ss
business through foreign subsidiaries, branches, or joint ventures with host country
ss ss s ss ss ss ss ss ss ss ss
firms.
ss
Answer:
TRUEDiff: 1 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
9) Ownership, control, and governance changes radically across the world. The
ss ss ss ss ss ss ss ss ss
publicly tradedcompany is not the dominant global business organization—the
ss ss ss ss ss ss ss ss ss
privately held or family-ownedbusiness is the prevalent structure—and their goals
ss ss ss ss s ss ss ss ss ss ss
and measures of performance differ dramatically.
ss ss ss ss ss ss
Answer:
TRUEDiff: 1 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
10) The securities at the heart of the global capital markets are the Mortgage Backed
ss ss ss ss ss ss ss ss ss ss ss ss ss
Securities (MBS). The health and security of the global financial system rely on the quality
ss s ss ss ss ss ss ss ss ss ss ss ss ss ss
of these securities.
ss ss ss
Answer:
FALSEDiff: 1 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
11) The U.S. dollar has been the focal point of currency trading since the 1940s. As
ss ss ss ss ss ss ss ss ss ss ss ss ss ss
a result, most of the world's currencies are quoted against the dollar.
ss ss s ss ss ss ss ss ss ss ss ss
Answer:
TRUEDiff: 1 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
12) Several of the world's major currency exchange rates follow a specific quotation
ss ss ss ss ss ss ss ss ss ss ss
convention that is the result of tradition and history. The exchange rate between the U.S.
ss s ss ss ss ss ss ss ss ss ss ss ss ss ss
dollar and the euro i s always quoted as "dollars per euro."
ss ss ss ss ss ss ss ss ss ss ss
Answer:
TRUEDiff: 1 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
3
Copyright © 2023 Pearson Education, ss ss ss ss
Inc.
,https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-bus
Multinational Business Finance, 16e (Eiteman/Stonehill/Moffett)
ss ss ss ss
Chapter 1 Multinational Financial Management: Opportunities and Challenges
ss ss ss ss ss ss
1.1 The Global Financial Marketplace
ss ss ss
1) Financial globalization has NOT resulted in: ss ss ss ss ss
A) continuing imbalances of balance of payments. ss ss ss ss ss
B) an increase in quantity and speed in the flow of capital across the world.
ss ss ss ss ss ss ss ss ss ss ss ss ss
C) capital markets less open and a decrease in the availability of capital for many organizations.
ss ss ss ss ss ss ss ss ss ss ss ss ss ss
D) uniform ways of ownership, control, and governance across the
ss ss ss ss ss ss ss ss
world.Answer: D
ss s s
Diff: 1 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
2) Financial globalization has NOT resulted in: ss ss ss ss ss
A) continuing imbalances of balance of payments. ss ss ss ss ss
B) an increase in quantity and speed in the flow of capital across the world.
ss ss ss ss ss ss ss ss ss ss ss ss ss
C) capital markets more open and an increase in the availability of capital
ss ss ss ss ss ss ss ss ss ss ss
for manyorganizations.
ss ss
D) an increase in the flow of capital into and out of
ss ss ss ss ss ss ss ss ss ss
industrialized markets.Answer: C
ss ss s s
Diff: 1 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
3) The institutions of global finance are:
ss ss ss ss ss
A) central banks. ss
B) commercial banks. ss
C) investment banks. ss
D) All of the above are institutions of
ss ss ss ss ss ss
global finance.Answer: D
ss ss s s
Diff: 1 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
1
Copyright © 2023 Pearson Education, ss ss ss ss
Inc.
,https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-bus
4) A major cost avoided in the eurocurrency markets is the payment of deposit
ss ss ss ss ss ss ss ss ss ss ss ss
insurance fees,such as:
ss ss ss
A) Federal Deposit Insurance Corporation — FDIC. ss ss ss ss ss
B) Office of the Comptroller of the Currency — OCC.
ss ss ss ss ss ss ss ss
C) International Monetary Fund — IMF. ss ss ss ss
D) World Bank — ss ss
WB.Answer: A
ss s s
Diff: 2
ss ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
5) The modern eurocurrency market was born shortly after:
ss ss ss ss ss ss ss
A) World War II. ss ss
B) World War I. ss ss
C) Korean War. ss
D) Bosnian
War.Answer
ss
:
A Diff: 1
ss ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
6) The reference rate of interest in the eurocurrency market is the:
ss ss ss ss ss ss ss ss ss ss
A) London Interbank Offered Rate. ss ss ss
B) Prima rate. ss
C) Federal funds rate. ss ss
D) Treasury
rate.Answer
ss
:
A Diff: 1
ss ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
7) Interest spreads in the eurocurrency market are small for many reasons EXCEPT:
ss ss ss ss ss ss ss ss ss ss ss
A) Eurocurrency loans are secured loans. ss ss ss ss
B) Eurocurrency deposits and loans are made in amounts of $500,000 or more on ss ss ss ss ss ss ss ss ss ss ss ss
an unsecuredbasis.
ss ss s
C) The eurocurrency is a wholesale market.
ss ss ss ss ss
D) Borrowers are usually large corporations or government ss ss ss ss ss ss
entities.Answer: A
ss s s s
Diff: 2 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
2
Copyright © 2023 Pearson Education,
ss ss ss ss
Inc.
, https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-bus
8) Multinational enterprises (MNEs) are firms, both for-profit companies and not-for-
ss ss ss ss ss ss ss ss ss
profit organizations, that have operations in more than one country, and conduct their
ss ss ss ss ss ss ss ss ss ss ss ss
business through foreign subsidiaries, branches, or joint ventures with host country
ss ss s ss ss ss ss ss ss ss ss
firms.
ss
Answer:
TRUEDiff: 1 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
9) Ownership, control, and governance changes radically across the world. The
ss ss ss ss ss ss ss ss ss
publicly tradedcompany is not the dominant global business organization—the
ss ss ss ss ss ss ss ss ss
privately held or family-ownedbusiness is the prevalent structure—and their goals
ss ss ss ss s ss ss ss ss ss ss
and measures of performance differ dramatically.
ss ss ss ss ss ss
Answer:
TRUEDiff: 1 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
10) The securities at the heart of the global capital markets are the Mortgage Backed
ss ss ss ss ss ss ss ss ss ss ss ss ss
Securities (MBS). The health and security of the global financial system rely on the quality
ss s ss ss ss ss ss ss ss ss ss ss ss ss ss
of these securities.
ss ss ss
Answer:
FALSEDiff: 1 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
11) The U.S. dollar has been the focal point of currency trading since the 1940s. As
ss ss ss ss ss ss ss ss ss ss ss ss ss ss
a result, most of the world's currencies are quoted against the dollar.
ss ss s ss ss ss ss ss ss ss ss ss
Answer:
TRUEDiff: 1 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
12) Several of the world's major currency exchange rates follow a specific quotation
ss ss ss ss ss ss ss ss ss ss ss
convention that is the result of tradition and history. The exchange rate between the U.S.
ss s ss ss ss ss ss ss ss ss ss ss ss ss ss
dollar and the euro i s always quoted as "dollars per euro."
ss ss ss ss ss ss ss ss ss ss ss
Answer:
TRUEDiff: 1 ss
L.O.: 1.1 The Global Financial
ss ss ss ss
MarketplaceSkill: Recognition
ss s s
AACSB: Application of knowledge
ss ss ss
3
Copyright © 2023 Pearson Education, ss ss ss ss
Inc.
