Stuviatopgrades
Just For You...Yes You....EXCELLENT HOMEWORK HELP AND TUTORING ,ALL KIND OF QUIZ AND EXAMS WITH GUARANTEE OF A
Am an expert on major courses especially; psychology, Nursing, Human resource Management and Mathematics Assisting students with quality work is my first priority. I ensure scholarly standards in my documents and that's why I'm one of the BEST GOLD RATED TUTORS in STUVIA. I assure a GOOD GRADE if you will use my work
- 1565
- 0
- 102
Community
- Followers
- Following
1 Reviews received
11 items
FIN582 Exam Questions with Correct Answers
FIN582 Exam Questions 
with Correct Answers 
 
A Mexican firm issues €-denominated bond to investors in Europe. These bonds would 
be classified as Eurobonds. 
true or false - Answer-false 
Dealers in the interbank market make money by buying currencies at a bid price that is 
lower than the ask price at which they sell currencies 
true or false - Answer-true 
A U.S. importer hedges by buying a futures contract on the €. The contract is for 
€100,000 at a price of $1.25/€. If the futures...
- Exam (elaborations)
- • 6 pages •
FIN582 Exam Questions 
with Correct Answers 
 
A Mexican firm issues €-denominated bond to investors in Europe. These bonds would 
be classified as Eurobonds. 
true or false - Answer-false 
Dealers in the interbank market make money by buying currencies at a bid price that is 
lower than the ask price at which they sell currencies 
true or false - Answer-true 
A U.S. importer hedges by buying a futures contract on the €. The contract is for 
€100,000 at a price of $1.25/€. If the futures...
FIN 582 Exam 1 Questions and Answers All Correct
FIN 582 Exam 1 Questions 
and Answers All Correct 
 
Theory of Competitive Advantage: - Answer-specialization increases production 
efficiency 
Imperfect Markets Theory: - Answer-factors of production are somewhat immobile 
providing incentive to seek out foreign opportunities 
Product Cycle Theory: - Answer-as a firm matures, it recognizes opportunities outside 
its domestic market 
How firms engage in international business: - Answer-1. international trade (easiest) 
2. licensing 
3. franchisi...
- Exam (elaborations)
- • 23 pages •
FIN 582 Exam 1 Questions 
and Answers All Correct 
 
Theory of Competitive Advantage: - Answer-specialization increases production 
efficiency 
Imperfect Markets Theory: - Answer-factors of production are somewhat immobile 
providing incentive to seek out foreign opportunities 
Product Cycle Theory: - Answer-as a firm matures, it recognizes opportunities outside 
its domestic market 
How firms engage in international business: - Answer-1. international trade (easiest) 
2. licensing 
3. franchisi...
FIN 582 Chapter 8 Quiz Questions with Correct Answers
FIN 582 Chapter 8 Quiz 
Questions with Correct 
Answers 
 
According to the IFE, if British interest rates are lower than U.S. interest rates 
a. the British inflation rate will decrease. 
b. the British pound will appreciate against the dollar. 
c. the British pound will depreciate against the dollar. 
d. today's forward rate of the British pound will equal today's spot rate. 
e. the British pound's value will remain constant. - Answer-b. the British pound will 
appreciate against the dollar...
- Package deal
- Exam (elaborations)
- • 7 pages •
FIN 582 Chapter 8 Quiz 
Questions with Correct 
Answers 
 
According to the IFE, if British interest rates are lower than U.S. interest rates 
a. the British inflation rate will decrease. 
b. the British pound will appreciate against the dollar. 
c. the British pound will depreciate against the dollar. 
d. today's forward rate of the British pound will equal today's spot rate. 
e. the British pound's value will remain constant. - Answer-b. the British pound will 
appreciate against the dollar...
FIN 582 Quiz Test Questions with Correct Answers
FIN 582 Quiz Test 
Questions with 
Correct Answers 
 
Arbitrage involves ____ key elements - Answer-4 
Which of the following is not a key element of arbitrage - Answer-Buy when 
undervalued, wait, sell when overvalued 
As locational arbitrage occurs (disregard the bid-ask spread), banks running out of 
inventory of a currency will raise their prices. - Answer-True 
When the bid-ask spread is considered, locational arbitrage is possible if and only if the 
very highest ask price is above the ver...
- Package deal
- Exam (elaborations)
- • 4 pages •
FIN 582 Quiz Test 
Questions with 
Correct Answers 
 
Arbitrage involves ____ key elements - Answer-4 
Which of the following is not a key element of arbitrage - Answer-Buy when 
undervalued, wait, sell when overvalued 
As locational arbitrage occurs (disregard the bid-ask spread), banks running out of 
inventory of a currency will raise their prices. - Answer-True 
When the bid-ask spread is considered, locational arbitrage is possible if and only if the 
very highest ask price is above the ver...
FIN 582 Ch 3 Review Questions with Correct Answers
FIN 582 Ch 3 Review 
Questions with 
Correct Answers 
 
The forward rate is the exchange rate used for an immediate exchange of currencies. - 
Answer-False 
The ask quote is the price for which a bank offers to sell a currency. - Answer-True 
The existence of imperfect markets has prevented the internationalization of financial 
markets. - Answer-False 
Under the gold standard, each currency was convertible into gold at a specified rate, 
and the exchange rate between two currencies was determin...
- Package deal
- Exam (elaborations)
- • 7 pages •
FIN 582 Ch 3 Review 
Questions with 
Correct Answers 
 
The forward rate is the exchange rate used for an immediate exchange of currencies. - 
Answer-False 
The ask quote is the price for which a bank offers to sell a currency. - Answer-True 
The existence of imperfect markets has prevented the internationalization of financial 
markets. - Answer-False 
Under the gold standard, each currency was convertible into gold at a specified rate, 
and the exchange rate between two currencies was determin...
FIN 582 Chapter 7 Quiz Questions with Correct Answers
FIN 582 Chapter 7 Quiz 
Questions with Correct 
Answers 
 
Due to ____, market forces should realign the spot rate of a currency among banks. 
a. covered interest arbitrage 
b. locational arbitrage 
c. quadratic arbitrage 
d. triangular arbitrage - Answer-b. locational arbitrage 
Assume that the interest rate in the home country of Currency X is much lower than the 
U.S. interest rate. According to interest rate parity, the forward rate of Currency X 
a. should exhibit a discount. 
b. should exh...
- Package deal
- Exam (elaborations)
- • 7 pages •
FIN 582 Chapter 7 Quiz 
Questions with Correct 
Answers 
 
Due to ____, market forces should realign the spot rate of a currency among banks. 
a. covered interest arbitrage 
b. locational arbitrage 
c. quadratic arbitrage 
d. triangular arbitrage - Answer-b. locational arbitrage 
Assume that the interest rate in the home country of Currency X is much lower than the 
U.S. interest rate. According to interest rate parity, the forward rate of Currency X 
a. should exhibit a discount. 
b. should exh...
Fin 582 Chapter 8 Exam Questions and Answers
Fin 582 Chapter 8 Exam 
Questions and Answers 
 
There is much evidence to suggest that Japanese investors invest in U.S. Treasury 
securities when U.S. interest rates are higher than Japanese interest rates. These 
investors most likely believe in the international Fisher effect. - Answer-False 
The relative form of purchasing power parity (PPP) accounts for the possibility of market 
imperfections such as transportation costs, tariffs, and quotas in establishing a 
relationship between inflat...
- Package deal
- Exam (elaborations)
- • 11 pages •
Fin 582 Chapter 8 Exam 
Questions and Answers 
 
There is much evidence to suggest that Japanese investors invest in U.S. Treasury 
securities when U.S. interest rates are higher than Japanese interest rates. These 
investors most likely believe in the international Fisher effect. - Answer-False 
The relative form of purchasing power parity (PPP) accounts for the possibility of market 
imperfections such as transportation costs, tariffs, and quotas in establishing a 
relationship between inflat...
FIN 582 Chapter 5 Exam Questions with Correct Answers
FIN 582 Chapter 5 Exam 
Questions with Correct 
Answers 
 
An option writer is the seller of a call or a put option. - Answer-True 
An MNC frequently uses either forward or futures contracts to hedge its exposure to 
foreign receivables. To do so, the MNC can either sell the foreign currency forward or 
sell futures. - Answer-False 
Hedgers should buy puts if they are hedging an expected inflow of foreign currency. - 
Answer-True 
The lower bound of the call option premium is the greater of zero...
- Package deal
- Exam (elaborations)
- • 8 pages •
FIN 582 Chapter 5 Exam 
Questions with Correct 
Answers 
 
An option writer is the seller of a call or a put option. - Answer-True 
An MNC frequently uses either forward or futures contracts to hedge its exposure to 
foreign receivables. To do so, the MNC can either sell the foreign currency forward or 
sell futures. - Answer-False 
Hedgers should buy puts if they are hedging an expected inflow of foreign currency. - 
Answer-True 
The lower bound of the call option premium is the greater of zero...
Fin 582 Chapter 6 Exam Questions with Correct Answers
Fin 582 Chapter 6 Exam 
Questions with Correct 
Answers 
 
A weak dollar is normally expected to cause 
a. high unemployment and high inflation in the U.S. 
b. low unemployment and high inflation in the U.S. 
c. low unemployment and low inflation in the U.S. 
d. high unemployment and low inflation in the U.S. - Answer-b. low unemployment and 
high inflation in the U.S. 
Under a freely floating exchange rate system 
a. exchange rates remain very stable because of offsetting economic conditions. 
...
- Package deal
- Exam (elaborations)
- • 6 pages •
Fin 582 Chapter 6 Exam 
Questions with Correct 
Answers 
 
A weak dollar is normally expected to cause 
a. high unemployment and high inflation in the U.S. 
b. low unemployment and high inflation in the U.S. 
c. low unemployment and low inflation in the U.S. 
d. high unemployment and low inflation in the U.S. - Answer-b. low unemployment and 
high inflation in the U.S. 
Under a freely floating exchange rate system 
a. exchange rates remain very stable because of offsetting economic conditions. 
...
Fin 582 Chapter 5 Quiz Questions with Correct Answers
Fin 582 Chapter 5 Quiz 
Questions with Correct 
Answers 
 
The one-year forward rate of the British pound is quoted at $1.50, and the spot rate of 
the British pound is quoted at $1.515. The forward ____ is ____ percent. 
a. discount; 1.0 
b. discount; 1.5 
c. premium; 1.5 
d. premium; 1.0 - Answer-a. discount; 1.0 
Forward contracts contain 
a. a right but not a commitment to the owner, and can be tailored to the owner's desire. 
b. a commitment to the owner, and can be tailored to the owner'...
- Package deal
- Exam (elaborations)
- • 7 pages •
Fin 582 Chapter 5 Quiz 
Questions with Correct 
Answers 
 
The one-year forward rate of the British pound is quoted at $1.50, and the spot rate of 
the British pound is quoted at $1.515. The forward ____ is ____ percent. 
a. discount; 1.0 
b. discount; 1.5 
c. premium; 1.5 
d. premium; 1.0 - Answer-a. discount; 1.0 
Forward contracts contain 
a. a right but not a commitment to the owner, and can be tailored to the owner's desire. 
b. a commitment to the owner, and can be tailored to the owner'...
NR547 Final Exam ACTUAL EXAM TEST BANK 200+ QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSWERS)|AGRADE