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