Test Bank for Multinational Business Finance 16th Edition By (Eiteman/Stonehill/Moffett), ISBN: 9780137496013, All 18 Chapters Covered, |Complete Solution |Guide A+.

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MultinationalllBusinessllFinance,ll16ell(Eiteman/Stonehill/Moffett)
Chapterll1 MultinationalllFinancial Management:llOpportunitiesllandllChallenges
.,




1.1 ThellGloballlFinancialllMarketplace

1) FinancialllglobalizationllhasllNOTllresultedllin:
A) continuingllimbalancesllofllbalancellofllpayments.
B) anllincrease inllquantityllandllspeed inllthellflowllofllcapitalllacrossllthe world.
., ., .,


C) capitalllmarketsllless openllandllalldecreasellinllthellavailabilityllofllcapitalllforllmanyllorganizations.
.,


D) uniformllwaysllofllownership,llcontrol,llandllgovernancellacrossllthellworld.
Allnswer:llD
Diff:ll1
L.O.:ll1.1llThellGloballlFinancialllMarketplaceSkill:
Recognition
AACSB:l l l l Applicationllofllknowledge

2) FinancialllglobalizationllhasllNOTllresultedllin:
A) continuingllimbalancesllofllbalancellofllpayments.
B) anllincreasellinllquantityllandllspeedllinllthellflowllofllcapitalllacrossllthellworld.
C) capitalllmarketsllmorellopenllandllanllincreasellinllthellavailabilitylofllcapitalllforllmanyo
rllganizations.
D) anllincreasellin thellflowllofllcapitalllintollandllout ofllindustrializedllmarkets.
., .,


Allnswer:llC
Diff:ll1
L.O.:ll1.1llThellGloballlFinancialllMarketplaceSkill:llRec
ognition
AACSB:l l l l Applicationllofllknowledge

3) Thellinstitutionsllofllgloballlfinancellare:
A) centralllbanks.
B) commercialllbanks.
C) investmentllbanks.
D) Allllofllthe abovellarellinstitutionsllofllgloballlfinance
.,


.llAnswer:llD
Diff:ll1
L.O.:ll1.1llThellGloballlFinancialllMarketplaceSkill:llRec
ognition
AACSB:l l l l Applicationllofllknowledge




1
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4) Allmajorllcostllavoided inllthelleurocurrencyllmarketsllisllthellpaymentlloflldepositllinsurancellfees,
., .,


sullchllas:
A) FederalllDepositll Insurance Corporationll— FDIC.
., .,


B) OfficellofllthellComptrollerllofllthellCurrencyll— OCC. .,


C) InternationalllMonetaryllFundll— IMF. .,


D) WorldllBank — .,


llWB.Answer:llAll
Diff:ll2
L.O.:ll1.1llThellGloballlFinancialllMarketplaceSkill:
Recognition
AACSB:l l l l Applicationllofllknowledge

5) The modernlleurocurrencyllmarket wasllbornllshortlyllafter:
., .,


A) WorldllWarllII.
B) WorldllWarllI.
C) KoreanllWar.
D) BosnianWar.
Answer:l l AllDi
ff
:ll1
L.O.:ll1.1llThellGloballlFinancialllMarketplaceSkill:
Recognition
AACSB:l l l l Applicationllofllknowledge

6) Thellreferencellratellofllinterestllinllthelleurocurrencyllmarketllisllthe:
A) LondonllInterbankllOfferedllRate.
B) Primallrate.
C) Federalllfundsllrate.
D) Treasuryllrate.
Answer:l l AllDif
f:
1
L.O.:ll1.1llThellGloballlFinancialllMarketplaceSkill:
Recognition
AACSB:l l l l Applicationllofllknowledge

7) InterestllspreadsllinllthelleurocurrencyllmarketllarellsmallllforllmanyllreasonsllEXCEPT:
A) Eurocurrencyllloansllare securedllloans.
.,


B) Eurocurrencylldepositsllandllloansllarellmade inllamountsllofll$500,000llorllmorellon anllunsecuredb
., .,


allsis.
C) The eurocurrencyllisllallwholesalellmarket.
.,


D) Borrowersllarellusuallylllargellcorporationsllorllgovernmentllentitie
s.llAnswer:llA
Diff:ll2
L.O.:ll1.1llThellGloballlFinancialllMarketplaceSkill:llRec
ognition
AACSB:l l l l Applicationllofllknowledge

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8) Multinationalllenterprisesll(MNEs) arellfirms,llbothllfor-profit companiesllandllnot-for-
., .,


profitllorganizations,llthatllhavelloperationsllinllmorellthanllonellcountry,llandllconduct theirllbusinessllthroll
.,


ugh foreign subsidiaries,llbranches,llorlljointllventures withllhostllcountryllfirms.
., ., .,


Answer:llTRUE Diff .,


:ll1
L.O.:ll1.1llThellGloballlFinancialllMarketplaceSkill:
Recognition
AACSB:l l l l Applicationllofllknowledge

9) Ownership,llcontrol,llandllgovernancellchangesllradicallyllacrossllthellworld.llThellpubliclylltraded
collmpanyllisllnotllthelldominantllgloballlbusinessllorganization—thellprivatelyllheldllorllfamily-
llowned businessllisllthellprevalentllstructure—
.,


andlltheirllgoals andllmeasures ofllperformancelldifferlldramatically.llA
., .,


nswer:llTRUE Diff .,


:ll1
L.O.:ll1.1llThellGloballlFinancialllMarketplaceSkill:
Recognition
AACSB:l l l l Applicationllofllknowledge

10) The securitiesllatllthellheartllofllthellgloballlcapitalllmarketsllarellthellMortgagellBackedllSecurities (
., .,


MllBS).llThellhealth andllsecurityllofllthellgloballlfinancialllsystemllrelyllonllthellqualityllofllthesellsecu
.,


rities.
Answer:llFALSEDi
llff:ll1
L.O.:ll1.1llThellGloballlFinancialllMarketplaceSkill:
Recognition
AACSB:l l l l Applicationllofllknowledge

11) The U.S.lldollarllhasllbeenllthellfocalllpointllofllcurrencylltradingllsince thell1940s.llAsllallresult,
., .,


mollstllofllthellworld'sllcurrencies arellquotedllagainstllthelldollar.
.,


Answer:llTRUE Diff .,


:ll1
L.O.:ll1.1llThellGloballlFinancialllMarketplaceSkill:
Recognition
AACSB:l l l l Applicationllofllknowledge

12) Severalllofllthellworld'sllmajorllcurrencyllexchangellratesllfollowllallspecificllquotationllconventio
nthllatllisllthellresultlloflltraditionlland history.llThellexchange ratellbetweenllthellU.S.lldollarlland thelleur
., ., .,


oisllalwllaysllquotedllas "dollarsllperlleuro."
.,


Answer:llTRUE Diff .,


:ll1
L.O.:ll1.1llThellGloballlFinancialllMarketplaceSkill:llRec
ognition
AACSB:l l l l Applicationllofllknowledge




3
Copyrightll©ll2023llPearsonllEducation,llIn
c.