Test Bank for Multinational Business Finance
16th Edition By (Eiteman/Stonehill/Moffett),
All 18 Chapters Covered
,PART Y7I: Y7GLOBAL Y7FINANCIAL Y7ENVIRONMENT
1. Multinational Y7Financial Y7Management: Y7Challenges Y7and Y7Opportunities
2. International Y7Monetary Y7System
3. The Y7Balance Y7of Y7Payments
4. Financial Y7Goals, Y7Corporate Y7Governance Y7and Y7the Y7Market Y7for Y7Corporate
Control
Y7 Y 7 PART Y7II: Y7FOREIGN Y7EXCHANGE Y7THEORY Y7& Y7MARKETS
5. The Y7Foreign Y7Exchange Y7Market
6. International Y7Parity Y7Conditions
• Appendix: Y7An Y7Algebraic Y7Primer Y7to Y7International Y7Parity Y7Conditions
7. Foreign Y7Currency Y7Derivatives: Y7Futures Y7& Y7Options
• Appendix: Y7Currency Y7Option Y7Pricing Y7Theory
8. Interest Y7Rate Y7Risk Y7and Y7Swaps
9. Foreign Y7Exchange Y7Rate Y7Determination Y7&
Intervention Y 7 PART Y7III: Y7FOREIGN Y7EXCHANGE
Y7
EXPOSURE Y 7 10.Transaction Y7Exposure
Y7
• Appendix Y7A: Y7Complex Y7Option Y7Hedges
• Appendix Y7B: Y7The Y7Optimal Y7Hedge Y7Ratio Y7and Y7Hedge Y7Effectiveness
11.Translation Y7Exposure
Y7 12.Operating Y7Exposure
PART Y7IV: Y7FINANCING Y7THE Y7GLOBAL Y7FIRM
13.Global Y7Cost Y7and Y7Availability Y7of Y7Capital
Y7 14.Funding Y7the Y7Multinational Y7Firm
Y7 15.Multinational Y7Tax Y7Management
Y7 16.International Y7Trade Y7Finance
PART Y7V: Y7FOREIGN Y7INVESTMENTS Y7AND Y7INVESTMENT Y7ANALYSIS
17.Foreign Y7Direct Y7Investment Y7& Y7Political Y7Risk
18.Multinational Y7Capital Y7Budgeting Y7& Y7Cross-Border Y7Acquisitions
,Multinational Business Finance, 16e
Y7 Y7 Y7
(Eiteman/Stonehill/Moffett) Chapter 1 Multinational
Y7 Y7 Y7 Y7 Y7
Financial Management: Opportunities and Challenges
Y7 Y7 Y7 Y7 Y7 Y7
1.1 The Y7Global Y7Financial Y7Marketplace
1) Financial Y7globalization Y7has Y7NOT Y7resulted Y7in:
A) continuing Y7imbalances Y7of Y7balance Y7of Y7payments.
B) an Y7increase Y7in Y7quantity Y7and Y7speed Y7in Y7the Y7flow Y7of Y7capital Y7across Y7the Y7world.
C) capital Y7markets Y7less Y7open Y7and Y7a Y7decrease Y7in Y7the Y7availability Y7of
Y7capital Y7for Y7many Y 7 organizations.
D) uniform Y7ways Y7of Y7ownership, Y7control, Y7and Y7governance
Y7across Y7the Y 7 world. Y7Answer: Y7 Y 7 D
Diff: Y71
L.O.: Y7 Y 7 1.1 Y7The Y7Global Y7Financial
Y7Marketplace Y 7 Skill: Y7 Y 7 Recognition
AACSB: Y7 Y7 Y7 Application Y7of Y7knowledge
2) Financial Y7globalization Y7has Y7NOT Y7resulted Y7in:
A) continuing Y7imbalances Y7of Y7balance Y7of Y7payments.
B) an Y7increase Y7in Y7quantity Y7and Y7speed Y7in Y7the Y7flow Y7of Y7capital Y7across Y7the Y7world.
C) capital Y7markets Y7more Y7open Y7and Y7an Y7increase Y7in Y7the Y7availability Y7of
Y7capital Y7for Y 7 many Y7organizations.
D) an Y7increase Y7in Y7the Y7flow Y7of Y7capital Y7into Y7and Y7out Y7of
Y7industrialized Y 7 markets. Y7Answer: Y7 Y 7 C
Diff: Y71
L.O.: Y7 Y 7 1.1 Y7The Y7Global Y7Financial
Y7Marketplace Y 7 Skill: Y7 Y 7 Recognition
AACSB: Y7 Y7 Y7 Application Y7of Y7knowledge
3) The Y7institutions Y7of Y7global Y7finance Y7are:
A) central Y7banks.
B) commercial Y7banks.
C) investment Y7banks.
D) All Y7of Y7the Y7above Y7are Y7institutions Y7of
Y7global Y 7 finance. Y7Answer: Y7 Y 7 D
Diff: Y71
L.O.: Y7 Y 7 1.1 Y7The Y7Global Y7Financial
Y7Marketplace Y 7 Skill: Y7 Y 7 Recognition
AACSB: Y7 Y7 Y7 Application Y7of Y7knowledge
, 4) A Y7major Y7cost Y7avoided Y7in Y7the Y7eurocurrency Y7markets Y7is Y7the Y7payment
Y7of Y7deposit Y 7 insurance Y7fees, Y7such Y7as:
A) Federal Y7Deposit Y7Insurance Y7Corporation Y7— Y7FDIC.
B) Office Y7of Y7the Y7Comptroller Y7of Y7the Y7Currency Y7— Y7OCC.
C) International Y7Monetary Y7Fund Y7— Y7IMF.
D) World Y7Bank Y7—
Y7WB. Y 7 Answer: Y7 Y 7 A
Diff: Y72
L.O.: Y7 Y 7 1.1 Y7The Y7Global Y7Financial
Y7Marketplace Y 7 Skill: Y7 Y 7 Recognition
AACSB: Y7 Y7 Y7 Application Y7of Y7knowledge
5) The Y7modern Y7eurocurrency Y7market Y7was Y7born Y7shortly Y7after:
A) World Y7War Y7II.
B) World Y7War Y7I.
C) Korean Y7War.
D) Bosnian
Y 7 War.
Y7Answer: Y 7 A
Y 7 Diff: Y71
L.O.: Y7 Y 7 1.1 Y7The Y7Global Y7Financial
Y7Marketplace Y 7 Skill: Y7 Y 7 Recognition
AACSB: Y7 Y7 Y7 Application Y7of Y7knowledge
6) The Y7reference Y7rate Y7of Y7interest Y7in Y7the Y7eurocurrency Y7market Y7is Y7the:
A) London Y7Interbank Y7Offered Y7Rate.
B) Prima Y7rate.
C) Federal Y7funds Y7rate.
D) Treasury
Y 7 rate.
Y7Answer: Y 7 A
Y 7 Diff: Y71
L.O.: Y7 Y 7 1.1 Y7The Y7Global Y7Financial
Y7Marketplace Y 7 Skill: Y7 Y 7 Recognition
AACSB: Y7 Y7 Y7 Application Y7of Y7knowledge
7) Interest Y7spreads Y7in Y7the Y7eurocurrency Y7market Y7are Y7small Y7for Y7many Y7reasons
Y7EXCEPT:
A) Eurocurrency Y7loans Y7are Y7secured Y7loans.
B) Eurocurrency Y7deposits Y7and Y7loans Y7are Y7made Y7in Y7amounts Y7of Y7$500,000 Y7or
Y7more Y7on Y7an Y 7 unsecured Y7basis.
C) The Y7eurocurrency Y7is Y7a Y7wholesale Y7market.
D) Borrowers Y7are Y7usually Y7large Y7corporations Y7or
Y7government Y 7 entities. Y7Answer: Y7 Y 7 A
Diff: Y72
L.O.: Y7 Y 7 1.1 Y7The Y7Global Y7Financial
Y7Marketplace Y 7 Skill: Y7 Y 7 Recognition
AACSB: Y7 Y7 Y7 Application Y7of Y7knowledge
16th Edition By (Eiteman/Stonehill/Moffett),
All 18 Chapters Covered
,PART Y7I: Y7GLOBAL Y7FINANCIAL Y7ENVIRONMENT
1. Multinational Y7Financial Y7Management: Y7Challenges Y7and Y7Opportunities
2. International Y7Monetary Y7System
3. The Y7Balance Y7of Y7Payments
4. Financial Y7Goals, Y7Corporate Y7Governance Y7and Y7the Y7Market Y7for Y7Corporate
Control
Y7 Y 7 PART Y7II: Y7FOREIGN Y7EXCHANGE Y7THEORY Y7& Y7MARKETS
5. The Y7Foreign Y7Exchange Y7Market
6. International Y7Parity Y7Conditions
• Appendix: Y7An Y7Algebraic Y7Primer Y7to Y7International Y7Parity Y7Conditions
7. Foreign Y7Currency Y7Derivatives: Y7Futures Y7& Y7Options
• Appendix: Y7Currency Y7Option Y7Pricing Y7Theory
8. Interest Y7Rate Y7Risk Y7and Y7Swaps
9. Foreign Y7Exchange Y7Rate Y7Determination Y7&
Intervention Y 7 PART Y7III: Y7FOREIGN Y7EXCHANGE
Y7
EXPOSURE Y 7 10.Transaction Y7Exposure
Y7
• Appendix Y7A: Y7Complex Y7Option Y7Hedges
• Appendix Y7B: Y7The Y7Optimal Y7Hedge Y7Ratio Y7and Y7Hedge Y7Effectiveness
11.Translation Y7Exposure
Y7 12.Operating Y7Exposure
PART Y7IV: Y7FINANCING Y7THE Y7GLOBAL Y7FIRM
13.Global Y7Cost Y7and Y7Availability Y7of Y7Capital
Y7 14.Funding Y7the Y7Multinational Y7Firm
Y7 15.Multinational Y7Tax Y7Management
Y7 16.International Y7Trade Y7Finance
PART Y7V: Y7FOREIGN Y7INVESTMENTS Y7AND Y7INVESTMENT Y7ANALYSIS
17.Foreign Y7Direct Y7Investment Y7& Y7Political Y7Risk
18.Multinational Y7Capital Y7Budgeting Y7& Y7Cross-Border Y7Acquisitions
,Multinational Business Finance, 16e
Y7 Y7 Y7
(Eiteman/Stonehill/Moffett) Chapter 1 Multinational
Y7 Y7 Y7 Y7 Y7
Financial Management: Opportunities and Challenges
Y7 Y7 Y7 Y7 Y7 Y7
1.1 The Y7Global Y7Financial Y7Marketplace
1) Financial Y7globalization Y7has Y7NOT Y7resulted Y7in:
A) continuing Y7imbalances Y7of Y7balance Y7of Y7payments.
B) an Y7increase Y7in Y7quantity Y7and Y7speed Y7in Y7the Y7flow Y7of Y7capital Y7across Y7the Y7world.
C) capital Y7markets Y7less Y7open Y7and Y7a Y7decrease Y7in Y7the Y7availability Y7of
Y7capital Y7for Y7many Y 7 organizations.
D) uniform Y7ways Y7of Y7ownership, Y7control, Y7and Y7governance
Y7across Y7the Y 7 world. Y7Answer: Y7 Y 7 D
Diff: Y71
L.O.: Y7 Y 7 1.1 Y7The Y7Global Y7Financial
Y7Marketplace Y 7 Skill: Y7 Y 7 Recognition
AACSB: Y7 Y7 Y7 Application Y7of Y7knowledge
2) Financial Y7globalization Y7has Y7NOT Y7resulted Y7in:
A) continuing Y7imbalances Y7of Y7balance Y7of Y7payments.
B) an Y7increase Y7in Y7quantity Y7and Y7speed Y7in Y7the Y7flow Y7of Y7capital Y7across Y7the Y7world.
C) capital Y7markets Y7more Y7open Y7and Y7an Y7increase Y7in Y7the Y7availability Y7of
Y7capital Y7for Y 7 many Y7organizations.
D) an Y7increase Y7in Y7the Y7flow Y7of Y7capital Y7into Y7and Y7out Y7of
Y7industrialized Y 7 markets. Y7Answer: Y7 Y 7 C
Diff: Y71
L.O.: Y7 Y 7 1.1 Y7The Y7Global Y7Financial
Y7Marketplace Y 7 Skill: Y7 Y 7 Recognition
AACSB: Y7 Y7 Y7 Application Y7of Y7knowledge
3) The Y7institutions Y7of Y7global Y7finance Y7are:
A) central Y7banks.
B) commercial Y7banks.
C) investment Y7banks.
D) All Y7of Y7the Y7above Y7are Y7institutions Y7of
Y7global Y 7 finance. Y7Answer: Y7 Y 7 D
Diff: Y71
L.O.: Y7 Y 7 1.1 Y7The Y7Global Y7Financial
Y7Marketplace Y 7 Skill: Y7 Y 7 Recognition
AACSB: Y7 Y7 Y7 Application Y7of Y7knowledge
, 4) A Y7major Y7cost Y7avoided Y7in Y7the Y7eurocurrency Y7markets Y7is Y7the Y7payment
Y7of Y7deposit Y 7 insurance Y7fees, Y7such Y7as:
A) Federal Y7Deposit Y7Insurance Y7Corporation Y7— Y7FDIC.
B) Office Y7of Y7the Y7Comptroller Y7of Y7the Y7Currency Y7— Y7OCC.
C) International Y7Monetary Y7Fund Y7— Y7IMF.
D) World Y7Bank Y7—
Y7WB. Y 7 Answer: Y7 Y 7 A
Diff: Y72
L.O.: Y7 Y 7 1.1 Y7The Y7Global Y7Financial
Y7Marketplace Y 7 Skill: Y7 Y 7 Recognition
AACSB: Y7 Y7 Y7 Application Y7of Y7knowledge
5) The Y7modern Y7eurocurrency Y7market Y7was Y7born Y7shortly Y7after:
A) World Y7War Y7II.
B) World Y7War Y7I.
C) Korean Y7War.
D) Bosnian
Y 7 War.
Y7Answer: Y 7 A
Y 7 Diff: Y71
L.O.: Y7 Y 7 1.1 Y7The Y7Global Y7Financial
Y7Marketplace Y 7 Skill: Y7 Y 7 Recognition
AACSB: Y7 Y7 Y7 Application Y7of Y7knowledge
6) The Y7reference Y7rate Y7of Y7interest Y7in Y7the Y7eurocurrency Y7market Y7is Y7the:
A) London Y7Interbank Y7Offered Y7Rate.
B) Prima Y7rate.
C) Federal Y7funds Y7rate.
D) Treasury
Y 7 rate.
Y7Answer: Y 7 A
Y 7 Diff: Y71
L.O.: Y7 Y 7 1.1 Y7The Y7Global Y7Financial
Y7Marketplace Y 7 Skill: Y7 Y 7 Recognition
AACSB: Y7 Y7 Y7 Application Y7of Y7knowledge
7) Interest Y7spreads Y7in Y7the Y7eurocurrency Y7market Y7are Y7small Y7for Y7many Y7reasons
Y7EXCEPT:
A) Eurocurrency Y7loans Y7are Y7secured Y7loans.
B) Eurocurrency Y7deposits Y7and Y7loans Y7are Y7made Y7in Y7amounts Y7of Y7$500,000 Y7or
Y7more Y7on Y7an Y 7 unsecured Y7basis.
C) The Y7eurocurrency Y7is Y7a Y7wholesale Y7market.
D) Borrowers Y7are Y7usually Y7large Y7corporations Y7or
Y7government Y 7 entities. Y7Answer: Y7 Y 7 A
Diff: Y72
L.O.: Y7 Y 7 1.1 Y7The Y7Global Y7Financial
Y7Marketplace Y 7 Skill: Y7 Y 7 Recognition
AACSB: Y7 Y7 Y7 Application Y7of Y7knowledge
