https://browsegrades.net/singlePaper/416756/testbank-a
,https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-bu
Multinational BusinessFinance,16e(Eiteman/Stonehill/Moffett)aw
Chapter1 MultinationalFinancialManagement:Opportunities and Challenges j j ja w
1.1 TheGlobalFinancialMarketplace j j
1) Financial globalization hasNOTresulted in: aw ja w j aw
A) continuing imbalancesofbalanceofpayments. aw j j
B) anincrease inquantityandspeed inthe flowofcapitalacrosstheworld.
j aw j j aw j ja w j j j
C) capitalmarkets lessopen and a decrease in theavailabilityofcapital for manyorganizations.
j aw j j j j aw ja w j jaw aw
D) uniformwaysofownership, control, and governanceacrosstheworld.Ans
j aw j jaw aw
wer: D j aw
Diff: 1 j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge ja w j
2) Financial globalization hasNOTresulted in: aw ja w j aw
A) continuing imbalancesofbalanceofpayments. aw j j
B) anincrease inquantityandspeed inthe flowofcapitalacrosstheworld.
j aw j j aw j ja w j j j
C) capitalmarkets moreopenandan increase inthe availabilityofcapital formanyorgan
j aw jaw aw j j j jaw
izations.
aw
D) an increase in the flowofcapitalintoand outof industrialized markets.Ans
j aw jaw aw j j j aw
wer: C
aw j aw
Diff: 1 j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge ja w j
3) Theinstitutionsof global finance are: ja w ja w aw
A) centralbanks. j
B) commercialbanks.
C) investmentbanks.
D) Alloftheaboveare institutionsof global finance.A
j j aw jaw jaw
n swer: D
aw j aw
Diff: 1 j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge ja w j
1
Copyright © 2023 Pearson Education, I aw a w a w aw a w
nc.
,https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-bu
4) Amajorcost avoided inthe eurocurrencymarkets is thepaymentofdepositinsurance fees,such a
j aw j aw aw aw j j aw jaw
s:
aw
A) FederalDepositInsuranceCorporation— FDIC.
j j j
B) Officeof theComptrollerof theCurrency—OCC.
ja w ja w
C) InternationalMonetaryFund —IMF. j
D) WorldBank—
WB.Answer: A
aw j aw a
Diff: 2
w j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge
ja w j
5) Themoderneurocurrencymarketwasbornshortlyafter:
j j j
A) World WarII. j
B) World WarI. j
C) KoreanWar. j
D) BosnianWar. j a
wAnswer: ADiff jjaw
:
1
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge
ja w j
6) Thereference rateof interest in theeurocurrency market isthe:
aw j aw aw jaw aw aw
A) LondonInterbank Offered Rate.
j j ja w
B) Primarate.
C) Federalfundsrate. j
D) Treasuryrate. a
wAnswer: ADiff jj aw
:
1
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge
ja w j
7) Interest spreads in theeurocurrencymarketare small formanyreasonsEXCEPT:
j j ja w j ja w j
A) Eurocurrencyloansare secured loans. j jaw
B) Eurocurrencydepositsand loans are made inamountsof$500,000 or moreonan unsecuredbasis. aw j aw aw j j j aw j ja w
C) Theeurocurrencyisa wholesale market. aw jaw
D) Borrowers are usuallylargecorporationsorgovernment entities.An
j j aw j a
swer: A
w j aw
Diff: 2
j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge
ja w j
2
Copyright © 2023 Pearson Education, I
aw a w a w aw a w
nc.
, https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-bu
8) Multinationalenterprises (MN Es) are firms,both for-profitcompaniesand not- for- j j aw j aw jaw j j jaw aw
profit organizations,that have operations in morethanonecountry,and conduct theirbusinessthro
aw j jaw j jaw jaw j aw jaw
ugh foreign subsidiaries,branches,or jointventures with hostcountry firms.
ja w j aw aw jaw aw
Answer:TRUEDiff j
:1
j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge ja w j
9) Ownership,control,and governancechanges radicallyacrossthe world. Thepubliclytradedcomp aw aw j jaw aw aw
anyis not thedominant globalbusinessorganization—the privatelyheldor family-
j aw jaw j j j aw
ownedbusiness isthe prevalentstructure— aw aw
and their goals and measuresofperformancediffer dramatically. Answer
j aw aw aw j aw aw
:TRUEDiff
j
:1
j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge ja w j
10) Thesecurities at the heartofthe globalcapital marketsarethe MortgageBackedSecurities(MBSj j aw j aw aw j aw
).Thehealthand securityof the global financialsystemrelyonthequalityof these securities.
j j jaw jaw jaw j jaw jaw
Answer:FALSEDif f: j j aw j
1
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge ja w j
11) TheU.S.dollar has been the focalpoint of currencytradingsincethe1940s.Asaresult,mosto aw j jaw aw j j jaw j j
f the world'scurrenciesare quoted againstthedollar.
aw j j j
Answer:TRUEDiff j
:1
j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge ja w j
12) Severalofthe world's majorcurrencyexchangerates followa specificquotationconventiont hat i
j aw ja w ja w aw j j aw
s theresultoftraditionand history. The exchangeratebetween the U.S.dollarand theeuroisalwaysq
aw j j jaw aw j j jaw jaw j
uo ted as"dollarspereuro."
aw j
Answer:TRUEDiff j
:1
j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge ja w j
3
Copyright © 2023 Pearson Education, I
aw a w a w aw a w
nc.
,https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-bu
Multinational BusinessFinance,16e(Eiteman/Stonehill/Moffett)aw
Chapter1 MultinationalFinancialManagement:Opportunities and Challenges j j ja w
1.1 TheGlobalFinancialMarketplace j j
1) Financial globalization hasNOTresulted in: aw ja w j aw
A) continuing imbalancesofbalanceofpayments. aw j j
B) anincrease inquantityandspeed inthe flowofcapitalacrosstheworld.
j aw j j aw j ja w j j j
C) capitalmarkets lessopen and a decrease in theavailabilityofcapital for manyorganizations.
j aw j j j j aw ja w j jaw aw
D) uniformwaysofownership, control, and governanceacrosstheworld.Ans
j aw j jaw aw
wer: D j aw
Diff: 1 j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge ja w j
2) Financial globalization hasNOTresulted in: aw ja w j aw
A) continuing imbalancesofbalanceofpayments. aw j j
B) anincrease inquantityandspeed inthe flowofcapitalacrosstheworld.
j aw j j aw j ja w j j j
C) capitalmarkets moreopenandan increase inthe availabilityofcapital formanyorgan
j aw jaw aw j j j jaw
izations.
aw
D) an increase in the flowofcapitalintoand outof industrialized markets.Ans
j aw jaw aw j j j aw
wer: C
aw j aw
Diff: 1 j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge ja w j
3) Theinstitutionsof global finance are: ja w ja w aw
A) centralbanks. j
B) commercialbanks.
C) investmentbanks.
D) Alloftheaboveare institutionsof global finance.A
j j aw jaw jaw
n swer: D
aw j aw
Diff: 1 j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge ja w j
1
Copyright © 2023 Pearson Education, I aw a w a w aw a w
nc.
,https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-bu
4) Amajorcost avoided inthe eurocurrencymarkets is thepaymentofdepositinsurance fees,such a
j aw j aw aw aw j j aw jaw
s:
aw
A) FederalDepositInsuranceCorporation— FDIC.
j j j
B) Officeof theComptrollerof theCurrency—OCC.
ja w ja w
C) InternationalMonetaryFund —IMF. j
D) WorldBank—
WB.Answer: A
aw j aw a
Diff: 2
w j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge
ja w j
5) Themoderneurocurrencymarketwasbornshortlyafter:
j j j
A) World WarII. j
B) World WarI. j
C) KoreanWar. j
D) BosnianWar. j a
wAnswer: ADiff jjaw
:
1
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge
ja w j
6) Thereference rateof interest in theeurocurrency market isthe:
aw j aw aw jaw aw aw
A) LondonInterbank Offered Rate.
j j ja w
B) Primarate.
C) Federalfundsrate. j
D) Treasuryrate. a
wAnswer: ADiff jj aw
:
1
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge
ja w j
7) Interest spreads in theeurocurrencymarketare small formanyreasonsEXCEPT:
j j ja w j ja w j
A) Eurocurrencyloansare secured loans. j jaw
B) Eurocurrencydepositsand loans are made inamountsof$500,000 or moreonan unsecuredbasis. aw j aw aw j j j aw j ja w
C) Theeurocurrencyisa wholesale market. aw jaw
D) Borrowers are usuallylargecorporationsorgovernment entities.An
j j aw j a
swer: A
w j aw
Diff: 2
j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge
ja w j
2
Copyright © 2023 Pearson Education, I
aw a w a w aw a w
nc.
, https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-bu
8) Multinationalenterprises (MN Es) are firms,both for-profitcompaniesand not- for- j j aw j aw jaw j j jaw aw
profit organizations,that have operations in morethanonecountry,and conduct theirbusinessthro
aw j jaw j jaw jaw j aw jaw
ugh foreign subsidiaries,branches,or jointventures with hostcountry firms.
ja w j aw aw jaw aw
Answer:TRUEDiff j
:1
j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge ja w j
9) Ownership,control,and governancechanges radicallyacrossthe world. Thepubliclytradedcomp aw aw j jaw aw aw
anyis not thedominant globalbusinessorganization—the privatelyheldor family-
j aw jaw j j j aw
ownedbusiness isthe prevalentstructure— aw aw
and their goals and measuresofperformancediffer dramatically. Answer
j aw aw aw j aw aw
:TRUEDiff
j
:1
j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge ja w j
10) Thesecurities at the heartofthe globalcapital marketsarethe MortgageBackedSecurities(MBSj j aw j aw aw j aw
).Thehealthand securityof the global financialsystemrelyonthequalityof these securities.
j j jaw jaw jaw j jaw jaw
Answer:FALSEDif f: j j aw j
1
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge ja w j
11) TheU.S.dollar has been the focalpoint of currencytradingsincethe1940s.Asaresult,mosto aw j jaw aw j j jaw j j
f the world'scurrenciesare quoted againstthedollar.
aw j j j
Answer:TRUEDiff j
:1
j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge ja w j
12) Severalofthe world's majorcurrencyexchangerates followa specificquotationconventiont hat i
j aw ja w ja w aw j j aw
s theresultoftraditionand history. The exchangeratebetween the U.S.dollarand theeuroisalwaysq
aw j j jaw aw j j jaw jaw j
uo ted as"dollarspereuro."
aw j
Answer:TRUEDiff j
:1
j
L.O.:1.1TheGlobalFinancial MarketplaceSkill: Reco
j jaw j ja w
gnition
AACSB: Applicationofknowledge ja w j
3
Copyright © 2023 Pearson Education, I
aw a w a w aw a w
nc.
