,https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-b
MultinationaluBusinessuFinance,u16eu(Eiteman/Stonehill/Moffett)
Chapteru1 MultinationaluFinancialuManagement:uOpportunitiesuanduChallenges
1.1 TheuGlobaluFinancialuMarketplace
1) FinancialuglobalizationuhasuNOTuresulteduin:
A) continuinguimbalancesuofubalanceuofupayments.
B) anuincreaseuinuquantityuanduspeeduinutheuflowuofucapitaluacrossutheuworld.
C) capitalumarketsulessuopenuanduaudecreaseuinutheuavailabilityuofucapitaluforumanyuorganizations.
D) uniformuwaysuofuownership,ucontrol,uandugovernanceuacrossutheuworld.u
Answer:u D
Diff:u1
L.O.:u1.1uTheuGlobaluFinancialuMarketplaceuSkill:
u Recognition
AACSB:u Applicationuofuknowledge
2) FinancialuglobalizationuhasuNOTuresulteduin:
A) continuinguimbalancesuofubalanceuofupayments.
B) anuincreaseuinuquantityuanduspeeduinutheuflowuofucapitaluacrossutheuworld.
C) capitalumarketsumoreuopenuanduanuincreaseuinutheuavailabilityuofucapitaluforumanyuo
rganizations.
D) anuincreaseuinutheuflowuofucapitaluintouanduoutuofuindustrializedumarkets.u
Answer:u C
Diff:u1
L.O.:u1.1uTheuGlobaluFinancialuMarketplaceuSkill:
u Recognition
AACSB:u Applicationuofuknowledge
3) Theuinstitutionsuofuglobalufinanceuare:
A) centralubanks.
B) commercialubanks.
C) investmentubanks.
D) Alluofutheuaboveuareuinstitutionsuofuglobalufinance.u
Answer:u D
Diff:u1
L.O.:u1.1uTheuGlobaluFinancialuMarketplaceuSkill:
u Recognition
AACSB:u Applicationuofuknowledge
1
Copyrightu©u2023uPearsonuEducation,uInc.
,https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-b
4) Aumajorucostuavoideduinutheueurocurrencyumarketsuisutheupaymentuofudeposituinsuranceufees,us
uchuas:
A) FederaluDeposituInsuranceuCorporationu—uFDIC.
B) OfficeuofutheuComptrolleruofutheuCurrencyu—uOCC.
C) InternationaluMonetaryuFundu—uIMF.
D) WorlduBanku—
uWB.uAnswer:u A
Diff:u2
L.O.:u1.1uTheuGlobaluFinancialuMarketplaceuSkill:
u Recognition
AACSB:u Applicationuofuknowledge
5) Theumodernueurocurrencyumarketuwasubornushortlyuafter:
A) WorlduWaruII.
B) WorlduWaruI.
C) KoreanuWar.
D) BosnianuWar.u
Answer:uuu AuDiff
: u1
L.O.:u1.1uTheuGlobaluFinancialuMarketplaceuSkill:
u Recognition
AACSB:u Applicationuofuknowledge
6) Theureferenceurateuofuinterestuinutheueurocurrencyumarketuisuthe:
A) LondonuInterbankuOffereduRate.
B) Primaurate.
C) Federalufundsurate.
D) Treasuryurate.u
Answer:uuu AuDiff
: u1
L.O.:u1.1uTheuGlobaluFinancialuMarketplaceuSkill:
u Recognition
AACSB:u Applicationuofuknowledge
7) InterestuspreadsuinutheueurocurrencyumarketuareusmalluforumanyureasonsuEXCEPT:
A) Eurocurrencyuloansuareusecureduloans.
B) Eurocurrencyudepositsuanduloansuareumadeuinuamountsuofu$500,000uorumoreuonuanuunsecuredub
asis.
C) Theueurocurrencyuisuauwholesaleumarket.
D) Borrowersuareuusuallyulargeucorporationsuorugovernmentuentities.u
Answer:u A
Diff:u2
L.O.:u1.1uTheuGlobaluFinancialuMarketplaceuSkill:
u Recognition
AACSB:u Applicationuofuknowledge
2
Copyrightu©u2023uPearsonuEducation,uInc.
, https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-b
8) Multinationaluenterprisesu(MNEs)uareufirms,ubothufor-profitucompaniesuandunot-for-
profituorganizations,uthatuhaveuoperationsuinumoreuthanuoneucountry,uanduconductutheirubusinessuthr
oughuforeignusubsidiaries,ubranches,uorujointuventuresuwithuhostucountryufirms.
Answer:uTRUEuDiff
: u1
L.O.:u1.1uTheuGlobaluFinancialuMarketplaceuSkill:
u Recognition
AACSB:u Applicationuofuknowledge
9) Ownership,ucontrol,uandugovernanceuchangesuradicallyuacrossutheuworld.uTheupubliclyutradeduc
ompanyuisunotutheudominantuglobalubusinessuorganization—theuprivatelyuhelduorufamily-
ownedubusinessuisutheuprevalentustructure—
andutheirugoalsuandumeasuresuofuperformanceudifferudramatically.
Answer:uTRUEuDiff
: u1
L.O.:u1.1uTheuGlobaluFinancialuMarketplaceuSkill:
u Recognition
AACSB:u Applicationuofuknowledge
10) TheusecuritiesuatutheuheartuofutheuglobalucapitalumarketsuareutheuMortgageuBackeduSecuritiesu(
MBS).uTheuhealthuandusecurityuofutheuglobalufinancialusystemurelyuonutheuqualityuofutheseusecuriti
es.
Answer:uFALSEuDi
ff:u1
L.O.:u1.1uTheuGlobaluFinancialuMarketplaceuSkill:
u Recognition
AACSB:u Applicationuofuknowledge
11) TheuU.S.udollaruhasubeenutheufocalupointuofucurrencyutradingusinceutheu1940s.uAsuauresult,u
mostuofutheuworld'sucurrenciesuareuquoteduagainstutheudollar.
Answer:uTRUEuDiff
: u1
L.O.:u1.1uTheuGlobaluFinancialuMarketplaceuSkill:
u Recognition
AACSB:u Applicationuofuknowledge
12) Severaluofutheuworld'sumajorucurrencyuexchangeuratesufollowuauspecificuquotationuconventionut
hatuisutheuresultuofutraditionuanduhistory.uTheuexchangeurateubetweenutheuU.S.udollaruandutheueurouisu
alwaysuquoteduasu"dollarsuperueuro."
Answer:uTRUEuDiff
: u1
L.O.:u1.1uTheuGlobaluFinancialuMarketplaceuSkill:
u Recognition
AACSB:u Applicationuofuknowledge
3
Copyrightu©u2023uPearsonuEducation,uInc.