FIN 6420 CH 3 | ACE EVERY QUIZ | CONFIDENCE
BACKED BY ACCURACY!
Assume that $1 is equal to .85 Euros and 98 yen. The value of yen in euros is
A. .01
B. 118
C. 1.18
D. .0087 - Answer: .0087
In general, stock markets allow for more governance and attract more investors when
they have all of the following except:
A. Less stringent accounting requirements
B. More legal protection for shareholders
C. More enforcement of the laws
D. More voting rights for shareholders - Answer: less stringent accounting requirements
A cross exchange rate expresses the amount of one foreign currency per unit of another
foreign currency. T/F? - Answer: TRUE
The bid/ask spread quoted on more liquid, heavily traded currencies are larger than the
spreads on less liquid, less traded currencies. T/F? - Answer: FALSE
Which of the following is NOT true about syndicated loans?
A. A borrower that receives a syndicated loan incurs various fees besides the interest
rate
B. The loans must be denominated in US dollars
1
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, C. The loans are provided by a group of banks to a borrower
D. All of these are true - Answer: the loans must be denominated in US dollars
The bid quote is the price at which a bank offers to sell a currency. T/F? - Answer:
FALSE
A Japanese yen is worth $.0080, and a Fijian dollar (F$) is worth $.5900. What is the
value of the yen in Fijian dollars (i.e., how many Fijian dollars do you need to buy a
yen)?
A. 125
B. 1.69
C 0.014
D. 73.75 - Answer: 0.014
A syndicated loan:
A. Represents a loan by a single bank to a syndicate of corporations
B. Represents a loan by a single bank to a syndicate of country governments
C. Represents a direct loan by a syndicate of oil-producing exporters to a less
developed country
D. Represents a loan by a single bank to a syndicate of corporations AND represents a
loan by a single bank to a syndicate of country governments
E. Represents a loan by a group of banks to a borrower - Answer: represents a loan by
a group of banks to a borrower
At any given point in time, a bank's bid quote will be greater than its ask quote. T/F? -
Answer: FALSE
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
BACKED BY ACCURACY!
Assume that $1 is equal to .85 Euros and 98 yen. The value of yen in euros is
A. .01
B. 118
C. 1.18
D. .0087 - Answer: .0087
In general, stock markets allow for more governance and attract more investors when
they have all of the following except:
A. Less stringent accounting requirements
B. More legal protection for shareholders
C. More enforcement of the laws
D. More voting rights for shareholders - Answer: less stringent accounting requirements
A cross exchange rate expresses the amount of one foreign currency per unit of another
foreign currency. T/F? - Answer: TRUE
The bid/ask spread quoted on more liquid, heavily traded currencies are larger than the
spreads on less liquid, less traded currencies. T/F? - Answer: FALSE
Which of the following is NOT true about syndicated loans?
A. A borrower that receives a syndicated loan incurs various fees besides the interest
rate
B. The loans must be denominated in US dollars
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
, C. The loans are provided by a group of banks to a borrower
D. All of these are true - Answer: the loans must be denominated in US dollars
The bid quote is the price at which a bank offers to sell a currency. T/F? - Answer:
FALSE
A Japanese yen is worth $.0080, and a Fijian dollar (F$) is worth $.5900. What is the
value of the yen in Fijian dollars (i.e., how many Fijian dollars do you need to buy a
yen)?
A. 125
B. 1.69
C 0.014
D. 73.75 - Answer: 0.014
A syndicated loan:
A. Represents a loan by a single bank to a syndicate of corporations
B. Represents a loan by a single bank to a syndicate of country governments
C. Represents a direct loan by a syndicate of oil-producing exporters to a less
developed country
D. Represents a loan by a single bank to a syndicate of corporations AND represents a
loan by a single bank to a syndicate of country governments
E. Represents a loan by a group of banks to a borrower - Answer: represents a loan by
a group of banks to a borrower
At any given point in time, a bank's bid quote will be greater than its ask quote. T/F? -
Answer: FALSE
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
