Test Bank for Multinational Business Finance 16th
Edition
by Eiteman, Stonehill,Moffett
All Chapters (1-18) |Q&A Verified | Grade A+
~1~
, TABLE OF CONTENTS
Chapter 1 Multinational Financial Management: Opportunities and Challenges......... 3
Chapter 2 International Monetary System .................................................................. 22
Chapter 3 The Balance of Payments............................................................................ 41
Chapter 4 Financial Goals, Corporate Governance, and the Market for Corporate
Control ........................................................................................................................ 64
Chapter 5 The Foreign Exchange Market .................................................................... 84
Chapter 6 International Parity Conditions ............................................................... 103
Chapter 7 Foreign Currency Derivatives: Futures and Options ................................ 121
Chapter 8 Interest Risk and Swaps ........................................................................... 145
Chapter 9 Foreign Exchange Rate Determination and Intervention ......................... 159
Chapter 10 Transaction Exposure ............................................................................ 176
Chapter 11 Translation Exposure ............................................................................. 193
Chapter 12 Operating Exposure................................................................................ 209
Chapter 13 Global Cost and Availability of Capital.................................................... 226
Chapter 14 Funding the Multinational Firm ............................................................. 249
Chapter 15 Multinational Tax Management ............................................................. 275
Chapter 16 International Trade Finance .................................................................. 292
Chapter 17 Foreign Direct Investment and Political Risk ......................................... 311
Chapter 18 Multinational Capital Budgeting and Cross-Border Acquisitions ....... 328
~2~
,Chapter 1 Multinational Financial Management: Opportunities and
Challenges
1.1 The Global Financial Marketplace
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.
CORRECT ANSWER: D
Diff: 1
L.O.: 1.1 The Global Financial Marketplace Skill: Recognition
AACSB: Application of knowledge
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.
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.
CORRECT ANSWER: C
Diff: 1
L.O.: 1.1 The Global Financial Marketplace Skill: Recognition
AACSB: Application of knowledge
3) The institutions of global finance are:
A) central banks.
B) commercial banks.
C) investment banks.
D) All of the above are institutions of global finance.
CORRECT ANSWER: D
~3~
, Diff: 1
L.O.: 1.1 The Global Financial Marketplace Skill: Recognition
AACSB: Application of knowledge
4) 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.
C) International Monetary Fund — IMF.
D) World Bank — WB.
CORRECT ANSWER: A
Diff: 2
L.O.: 1.1 The Global Financial Marketplace Skill: Recognition
AACSB: Application of knowledge
5) The modern eurocurrency market was born shortly after:
A) World War II.
B) World War I.
C) Korean War.
D) Bosnian War.
CORRECT ANSWER: A Diff: 1
L.O.: 1.1 The Global Financial Marketplace Skill: Recognition
AACSB: Application of knowledge
6) The reference rate of interest in the eurocurrency market is the:
A) London Interbank Offered Rate.
B) Prima rate.
C) Federal funds rate.
D) Treasury rate.
CORRECT ANSWER: A Diff: 1
L.O.: 1.1 The Global Financial Marketplace Skill: Recognition
AACSB: Application of knowledge
~4~
Edition
by Eiteman, Stonehill,Moffett
All Chapters (1-18) |Q&A Verified | Grade A+
~1~
, TABLE OF CONTENTS
Chapter 1 Multinational Financial Management: Opportunities and Challenges......... 3
Chapter 2 International Monetary System .................................................................. 22
Chapter 3 The Balance of Payments............................................................................ 41
Chapter 4 Financial Goals, Corporate Governance, and the Market for Corporate
Control ........................................................................................................................ 64
Chapter 5 The Foreign Exchange Market .................................................................... 84
Chapter 6 International Parity Conditions ............................................................... 103
Chapter 7 Foreign Currency Derivatives: Futures and Options ................................ 121
Chapter 8 Interest Risk and Swaps ........................................................................... 145
Chapter 9 Foreign Exchange Rate Determination and Intervention ......................... 159
Chapter 10 Transaction Exposure ............................................................................ 176
Chapter 11 Translation Exposure ............................................................................. 193
Chapter 12 Operating Exposure................................................................................ 209
Chapter 13 Global Cost and Availability of Capital.................................................... 226
Chapter 14 Funding the Multinational Firm ............................................................. 249
Chapter 15 Multinational Tax Management ............................................................. 275
Chapter 16 International Trade Finance .................................................................. 292
Chapter 17 Foreign Direct Investment and Political Risk ......................................... 311
Chapter 18 Multinational Capital Budgeting and Cross-Border Acquisitions ....... 328
~2~
,Chapter 1 Multinational Financial Management: Opportunities and
Challenges
1.1 The Global Financial Marketplace
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.
CORRECT ANSWER: D
Diff: 1
L.O.: 1.1 The Global Financial Marketplace Skill: Recognition
AACSB: Application of knowledge
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.
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.
CORRECT ANSWER: C
Diff: 1
L.O.: 1.1 The Global Financial Marketplace Skill: Recognition
AACSB: Application of knowledge
3) The institutions of global finance are:
A) central banks.
B) commercial banks.
C) investment banks.
D) All of the above are institutions of global finance.
CORRECT ANSWER: D
~3~
, Diff: 1
L.O.: 1.1 The Global Financial Marketplace Skill: Recognition
AACSB: Application of knowledge
4) 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.
C) International Monetary Fund — IMF.
D) World Bank — WB.
CORRECT ANSWER: A
Diff: 2
L.O.: 1.1 The Global Financial Marketplace Skill: Recognition
AACSB: Application of knowledge
5) The modern eurocurrency market was born shortly after:
A) World War II.
B) World War I.
C) Korean War.
D) Bosnian War.
CORRECT ANSWER: A Diff: 1
L.O.: 1.1 The Global Financial Marketplace Skill: Recognition
AACSB: Application of knowledge
6) The reference rate of interest in the eurocurrency market is the:
A) London Interbank Offered Rate.
B) Prima rate.
C) Federal funds rate.
D) Treasury rate.
CORRECT ANSWER: A Diff: 1
L.O.: 1.1 The Global Financial Marketplace Skill: Recognition
AACSB: Application of knowledge
~4~
