TEST BANK FOR Multinational Business Finance 16th Edition, by David Eiteman, Arthur Stonehill, Michael Moffett ISBN:9780137496013 ALL CHAPTERS COVERED COMPREHENSIVELY !! A+ GRADE ASSURED!!

,Multinational Business Finance, 16e (Eiteman/Stonehill/Moffett)
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Chapter 1 Multinational Financial Management: Opportunities and Challenges
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1.1 The Global Financial Marketplace
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1) Financial globalization has NOT resulted in:
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A) continuing imbalances of balance of payments. mm mm mm mm mm



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



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
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capital for manyorganizations.
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D) an increase in the flow of capital into and out of
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industrialized markets.Answer: C
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3) The institutions of global finance are:
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A) central banks. mm



B) commercial banks. mm



C) investment banks. mm



D) All of the above are institutions of
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global finance.Answer: D
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,4) A major cost avoided in the eurocurrency markets is the payment of deposit
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insurance fees,such as:
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A) Federal Deposit Insurance Corporation — FDIC.
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B) Office of the Comptroller of the Currency — OCC.
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C) International Monetary Fund — IMF. mm mm mm mm



D) World Bank — mm mm



WB.Answer: A
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5) The modern eurocurrency market was born shortly after:
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A) World War II. mm mm



B) World War I. mm mm



C) Korean War. mm



D) Bosnian
War.Answe
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r:
A Diff: 1
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6) The reference rate of interest in the eurocurrency market is the:
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A) London Interbank Offered Rate. mm mm mm



B) Prima rate. mm



C) Federal funds rate. mm mm



D) Treasury
rate.Answe
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r:
A Diff: 1
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7) Interest spreads in the eurocurrency market are small for many reasons EXCEPT:
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A) Eurocurrency loans are secured loans. mm mm mm mm



B) Eurocurrency deposits and loans are made in amounts of $500,000 or more
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on an unsecuredbasis.
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C) The eurocurrency is a wholesale market.
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D) Borrowers are usually large corporations or mm mm mm mm mm



government entities.Answer: A
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Diff: 2 mm



L.O.: 1.1 The Global Financial
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2
Copyright © 2023 Pearson Education,
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, MarketplaceSkill: Recognition
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AACSB: Application of
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knowledge
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3
Copyright © 2023 Pearson Education,
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Inc.