Complete Test Bank — Multinational Business Finance, 15th Edition — David K. Eiteman, 2021 — ISBN 9781292270081 — All Chapters Covered (Latest Update)

Multinational Business Finance

15th Edition
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TEST BANK
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David K. Eiteman
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Arthur I. Stonehill

Michael H. Moffett
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Comprehensive Test Bank for Instructors

and Students
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© David K. Eiteman, Arthur I. Stonehill & Michael H. Moffett

All rights reserved. Reproduction or distribution without permission is prohibited.


©MedConnoisseur

, Multinational Business Finance, 15e (Eiteman/Stonehill/Moffett)
Chapter 1 Multinational Financial Management: Opportunities and Challenges

1.1 The Global Financial Marketplace
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1) Financial globalization has NOT resulted in:
A) continuing imbalances of balance of payments.
B) an increase in quantity and speed in the flow of capital across the world.
C) capital markets less open and a decrease in the availability of capital for many organizations.
D) uniform ways of ownership, control, and governance across the world.
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Answer: D
Diff: 1
L.O.: 1.1 The Global Financial Marketplace
Skill: Recognition
AACSB: Application of knowledge
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2) Financial globalization has NOT resulted in:
A) continuing imbalances of balance of payments.
B) an increase in quantity and speed in the flow of capital across the world.
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C) capital markets more open and an increase in the availability of capital for many
organizations.
D) an increase in the flow of capital into and out of industrialized markets.
Answer: C
Diff: 1
L.O.: 1.1 The Global Financial Marketplace
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Skill: Recognition
AACSB: Application of knowledge

3) The institutions of global finance are:
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A) central banks.
B) commercial banks.
C) investment banks.
D) All of the above are institutions of global finance.
Answer: D
Diff: 1
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L.O.: 1.1 The Global Financial Marketplace
Skill: Recognition
AACSB: Application of knowledge
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, 4) A well-established, large U.S.-based MNE will probably NOT be able to overcome which of
the following obstacles to maximizing firm value?
A) an open marketplace
B) high-quality strategic management
C) access to capital
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D) none of the above
Answer: D
Diff: 1
L.O.: 1.1 The Global Financial Marketplace
Skill: Conceptual
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AACSB: Application of knowledge

5) A well-established, large, China-based MNE will probably be most adversely affected by
which of the following elements of firm value?
A) an open marketplace
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B) high-quality strategic management
C) access to capital
D) access to qualified labor pool
Answer: A
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Diff: 2
L.O.: 1.1 The Global Financial Marketplace
Skill: Conceptual
AACSB: Application of knowledge

6) A well-established, large, Brazil-based MNE will probably be most adversely affected by
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which of the following elements of firm value?
A) an open marketplace
B) high-quality strategic management
C) access to capital
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D) access to qualified labor pool
Answer: C
Diff: 2
L.O.: 1.1 The Global Financial Marketplace
Skill: Conceptual
AACSB: Application of knowledge
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7) A major cost avoided in the eurocurrency markets is the payment of deposit insurance fees,
such as:
A) Federal Deposit Insurance Corporation — FDIC.
B) Office of the Comptroller of the Currency — OCC.
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C) International Monetary Fund — IMF.
D) World Bank — WB.
Answer: A
Diff: 2
L.O.: 1.1 The Global Financial Marketplace
Skill: Recognition
AACSB: Application of knowledge

, 8) The modern eurocurrency market was born shortly after:
A) World War II.
B) World War I.
C) Korean War.
D) Bosnian War.
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Answer: A
Diff: 1
L.O.: 1.1 The Global Financial Marketplace
Skill: Recognition
AACSB: Application of knowledge
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9) The reference rate of interest in the eurocurrency market is the:
A) London Interbank Offered Rate.
B) Prima rate.
C) Federal funds rate.
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D) Treasury rate.
Answer: A
Diff: 1
L.O.: 1.1 The Global Financial Marketplace
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Skill: Recognition
AACSB: Application of knowledge

10) Interest spreads in the eurocurrency market are small for many reasons EXCEPT:
A) Eurocurrency loans are secured loans.
B) Eurocurrency deposits and loans are made in amounts of $500,000 or more on an unsecured
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basis.
C) The eurocurrency is a wholesale market.
D) Borrowers are usually large corporations or government entities.
Answer: A
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Diff: 2
L.O.: 1.1 The Global Financial Marketplace
Skill: Recognition
AACSB: Application of knowledge

11) Multinational enterprises (MNEs) are firms, both for-profit companies and not-for-profit
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organizations, that have operations in more than one country, and conduct their business through
foreign subsidiaries, branches, or joint ventures with host country firms.
Answer: TRUE
Diff: 1
L.O.: 1.1 The Global Financial Marketplace
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Skill: Recognition
AACSB: Application of knowledge