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