TESTsBANKsforsInternationalsFinancialsManagements9thsEditionsbysCheolsEun,sBrucesResnicksandsTuugi
Chuluun.
TEST BANK for International Financial Management9
s s s s s s
th Edition by Cheol Eun, Bruce Resnick and Tuugi Chul
s s s s s s s s s
uun. ISBN-13: 9781260013870
s s
TestsBank Pages1
, TESTsBANKsforsInternationalsFinancialsManagements9thsEditionsbysCheolsEun,sBrucesResnicksandsTuugi
Chuluun.
MULTIPLEsCHOICEs-
Choosesthesonesalternativesthatsbestscompletessthesstatementsorsanswerssthesquestion.
s
1) Whatsmajorsdimensionssetssapartsinternationalsfinancesfromsdomesticsfinance?
A) Foreignsexchangesandspoliticalsrisks
B) Marketsimperfections
C) Expandedsopportunitysset
D) allsofsthesoptions
2) Ansexample(s)sofsaspoliticalsrisksis
A) expropriationsofsassets.
B) adverseschangesinstaxsrules.
C) thesoppositionspartysbeingselected.
D) bothsthesexpropriationsofsassetssandsadverseschangessinstaxsrulessarescorrect.
3) Productionsofsgoodssandsservicesshassbecomesglobalizedstosaslargesextentsassasresultsof
A) naturalsresourcessbeingsdepletedsinsonescountrysaftersanother.
B) skilledslaborsbeingshighlysmobile.
C) multinationalscorporations'seffortsstossourcesinputssandslocatesproductionsanywheresw
herescostssareslowersandsprofitsshigher.
D) commonstastessworldwidesforsthessamesgoodssandsservices.
4) Recently,sfinancialsmarketsshavesbecomeshighlysintegrated.sThissdevelopment
TestsBank Pages2
, TESTsBANKsforsInternationalsFinancialsManagements9thsEditionsbysCheolsEun,sBrucesResnicksandsTuugi
Chuluun.
A) allowssinvestorsstosdiversifystheirsportfoliossinternationally.
B) allowssminoritysinvestorsstosbuysandssellsstocks.
C) hassincreasedsthescostsofscapitalsforsfirms.
D) nonesofsthesoptions
5) Japanshassexperiencedslargestradessurpluses.sJapanesesinvestorsshavesrespondedstosthissby
A) liquidatingstheirspositionssinsstocksstosbuysdollar-denominatedsbonds.
B) investingsheavilysinsU.S.sandsothersforeignsfinancialsmarkets.
C) lobbyingsthesU.S.sgovernmentstosdepreciatesitsscurrency.
D) lobbyingsthesJapanesesgovernmentstosallowsthesyenstosappreciate.
6) Supposesyoursfirmsinvestss$100,000sinsasprojectsinsItaly.sAtsthestimesthesexchangesratesis
$1.25s=s€1.00.sOnesyearslatersthesexchangesratesissthessame,sbutsthesItaliansgovernmentshassexp
ropriatedsyoursfirm'ssassetsspayingsonlys€80,000sinscompensation.sThississansexamplesof
A) exchangesratesrisk.
B) politicalsrisk.
C) marketsimperfections.
D)snonesofsthesoptions,ssinces$100,000s=s€80,000s×s$1.25/€1.00.
TestsBank Pages3
, TESTsBANKsforsInternationalsFinancialsManagements9thsEditionsbysCheolsEun,sBrucesResnicksandsTuugi
Chuluun.
7) Supposesyousstartswiths$100sandsbuysstocksfors£50swhensthesexchangesratesiss£1s=s$2.sOnesy
earslater,sthesstocksrisesstos£60.sYousareshappyswithsyours20spercentsreturnsonsthesstock,sbutswhensyo
ussellsthesstocksandsexchangesyours£60sforsdollars,syousonlysgets$45ssincesthespoundshassfallenstos£1s
=s$0.75.sThisslosssofsvaluesissansexamplesof
A) exchangesratesrisk.
B) politicalsrisk.
C) marketsimperfections.
D) weaknesssinsthesdollar.
8) SupposesthatsGreatsBritainsissasmajorsexportsmarketsforsyoursfirm,sasU.S.-
basedsMNC.sIfsthesBritishspoundsdepreciatessagainststhesU.S.sdollar,
A) yoursfirmswillsbesablestoschargesmoresinsdollarstermsswhileskeepingspoundsprices
stable.
B) yoursfirmsmaysbespricedsoutsofsthesU.K.smarket,stosthesextentsthatsyoursdollarscosts
staysconstantsandsyourspoundspricesswillsrise.
C) tosprotectsU.K.smarketsshare,syoursfirmsmayshavestoscutsthesdollarspricesofsyoursgoodsstosk
eepsthespoundspricesthessame.
D) yoursfirmsmaysbespricedsoutsofsthesU.K.smarket,stosthesextentsthatsyoursdollarscostsssta
ysconstantsandsyourspoundspricesswillsrise,sandstosprotectsU.K.smarketsshare,syoursfirmsmayshavest
oscutsthesdollarspricesofsyoursgoodsstoskeepsthespoundspricesthessame.
9) SupposesMexicosissasmajorsexportsmarketsforsyoursU.S.-
basedscompanysandsthesMexicanspesosappreciatessdrasticallysagainststhesU.S.sdollar.sThissmeans
TestsBank Pages4
Chuluun.
TEST BANK for International Financial Management9
s s s s s s
th Edition by Cheol Eun, Bruce Resnick and Tuugi Chul
s s s s s s s s s
uun. ISBN-13: 9781260013870
s s
TestsBank Pages1
, TESTsBANKsforsInternationalsFinancialsManagements9thsEditionsbysCheolsEun,sBrucesResnicksandsTuugi
Chuluun.
MULTIPLEsCHOICEs-
Choosesthesonesalternativesthatsbestscompletessthesstatementsorsanswerssthesquestion.
s
1) Whatsmajorsdimensionssetssapartsinternationalsfinancesfromsdomesticsfinance?
A) Foreignsexchangesandspoliticalsrisks
B) Marketsimperfections
C) Expandedsopportunitysset
D) allsofsthesoptions
2) Ansexample(s)sofsaspoliticalsrisksis
A) expropriationsofsassets.
B) adverseschangesinstaxsrules.
C) thesoppositionspartysbeingselected.
D) bothsthesexpropriationsofsassetssandsadverseschangessinstaxsrulessarescorrect.
3) Productionsofsgoodssandsservicesshassbecomesglobalizedstosaslargesextentsassasresultsof
A) naturalsresourcessbeingsdepletedsinsonescountrysaftersanother.
B) skilledslaborsbeingshighlysmobile.
C) multinationalscorporations'seffortsstossourcesinputssandslocatesproductionsanywheresw
herescostssareslowersandsprofitsshigher.
D) commonstastessworldwidesforsthessamesgoodssandsservices.
4) Recently,sfinancialsmarketsshavesbecomeshighlysintegrated.sThissdevelopment
TestsBank Pages2
, TESTsBANKsforsInternationalsFinancialsManagements9thsEditionsbysCheolsEun,sBrucesResnicksandsTuugi
Chuluun.
A) allowssinvestorsstosdiversifystheirsportfoliossinternationally.
B) allowssminoritysinvestorsstosbuysandssellsstocks.
C) hassincreasedsthescostsofscapitalsforsfirms.
D) nonesofsthesoptions
5) Japanshassexperiencedslargestradessurpluses.sJapanesesinvestorsshavesrespondedstosthissby
A) liquidatingstheirspositionssinsstocksstosbuysdollar-denominatedsbonds.
B) investingsheavilysinsU.S.sandsothersforeignsfinancialsmarkets.
C) lobbyingsthesU.S.sgovernmentstosdepreciatesitsscurrency.
D) lobbyingsthesJapanesesgovernmentstosallowsthesyenstosappreciate.
6) Supposesyoursfirmsinvestss$100,000sinsasprojectsinsItaly.sAtsthestimesthesexchangesratesis
$1.25s=s€1.00.sOnesyearslatersthesexchangesratesissthessame,sbutsthesItaliansgovernmentshassexp
ropriatedsyoursfirm'ssassetsspayingsonlys€80,000sinscompensation.sThississansexamplesof
A) exchangesratesrisk.
B) politicalsrisk.
C) marketsimperfections.
D)snonesofsthesoptions,ssinces$100,000s=s€80,000s×s$1.25/€1.00.
TestsBank Pages3
, TESTsBANKsforsInternationalsFinancialsManagements9thsEditionsbysCheolsEun,sBrucesResnicksandsTuugi
Chuluun.
7) Supposesyousstartswiths$100sandsbuysstocksfors£50swhensthesexchangesratesiss£1s=s$2.sOnesy
earslater,sthesstocksrisesstos£60.sYousareshappyswithsyours20spercentsreturnsonsthesstock,sbutswhensyo
ussellsthesstocksandsexchangesyours£60sforsdollars,syousonlysgets$45ssincesthespoundshassfallenstos£1s
=s$0.75.sThisslosssofsvaluesissansexamplesof
A) exchangesratesrisk.
B) politicalsrisk.
C) marketsimperfections.
D) weaknesssinsthesdollar.
8) SupposesthatsGreatsBritainsissasmajorsexportsmarketsforsyoursfirm,sasU.S.-
basedsMNC.sIfsthesBritishspoundsdepreciatessagainststhesU.S.sdollar,
A) yoursfirmswillsbesablestoschargesmoresinsdollarstermsswhileskeepingspoundsprices
stable.
B) yoursfirmsmaysbespricedsoutsofsthesU.K.smarket,stosthesextentsthatsyoursdollarscosts
staysconstantsandsyourspoundspricesswillsrise.
C) tosprotectsU.K.smarketsshare,syoursfirmsmayshavestoscutsthesdollarspricesofsyoursgoodsstosk
eepsthespoundspricesthessame.
D) yoursfirmsmaysbespricedsoutsofsthesU.K.smarket,stosthesextentsthatsyoursdollarscostsssta
ysconstantsandsyourspoundspricesswillsrise,sandstosprotectsU.K.smarketsshare,syoursfirmsmayshavest
oscutsthesdollarspricesofsyoursgoodsstoskeepsthespoundspricesthessame.
9) SupposesMexicosissasmajorsexportsmarketsforsyoursU.S.-
basedscompanysandsthesMexicanspesosappreciatessdrasticallysagainststhesU.S.sdollar.sThissmeans
TestsBank Pages4
