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Test Bank for Multinational Business Finance 16th Edition By (Eiteman/Stonehill/Moffett), ISBN: 9780137496013, All 18 Chapters Covered, Verified Latest Edition $16.99   Add to cart
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Test Bank for Multinational Business Finance 16th Edition By (Eiteman/Stonehill/Moffett), ISBN: 9780137496013, All 18 Chapters Covered, Verified Latest Edition
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Test Bank for Multinational Business Finance 16th Edition By (Eiteman/Stonehill/Moffett), ISBN: 9780137496013, All 18 Chapters Covered, Verified Latest Edition

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  • September 13, 2024
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  • 2024/2025
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https://browsegrades.net/singlePaper/416756/testbank-an

,https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-bu


Multinational Business Finance, 16e (Eiteman/Stonehill/Moffett)
9 9 9 9


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:
9 9 9 9 9


A) continuing imbalances of balance of payments.
9 9 9 9 9


B) an increase in quantity and speed in the flow of capital across the world.
9 9 9 9 9 9 9 9 9 9 9 9 9


C) capital markets less open and a decrease in the availability of capital for many organizations.
9 9 9 9 9 9 9 9 9 9 9 9 9 9


D) uniform ways of ownership, control, and governance across the world. A
9 9 9 9 9 9 9 9 9 9


nswer: D 9


Diff: 1
9


L.O.: 1.1 The Global Financial Marketplace Skill:
9 9 9 9 9 9


9Recognition
AACSB: Application of knowledge
9 9 9 9




2) Financial globalization has NOT resulted in:
9 9 9 9 9


A) continuing imbalances of balance of payments.
9 9 9 9 9


B) an increase in quantity and speed in the flow of capital across the world.
9 9 9 9 9 9 9 9 9 9 9 9 9


C) capital markets more open and an increase in the availability of capital for many or
9 9 9 9 9 9 9 9 9 9 9 9 9 9


ganizations.
D) an increase in the flow of capital into and out of industrialized markets. A
9 9 9 9 9 9 9 9 9 9 9 9 9


nswer: C 9


Diff: 1
9


L.O.: 1.1 The Global Financial Marketplace Skill:
9 9 9 9 9 9


9Recognition
AACSB: Application of knowledge
9 9 9 9




3) The institutions of global finance are:
9 9 9 9 9


A) central banks. 9


B) commercial banks. 9


C) investment banks. 9


D) All of the above are institutions of global finance.
9 9 9 9 9 9 9 9 9


Answer: D 9


Diff: 1
9


L.O.: 1.1 The Global Financial Marketplace Skill:
9 9 9 9 9 9


9Recognition
AACSB: Application of knowledge
9 9 9 9




1
Copyright © 2023 Pearson Education, Inc.9 9 9 9 9

,https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-bu


4) A major cost avoided in the eurocurrency markets is the payment of deposit insurance fees, su
9 9 9 9 9 9 9 9 9 9 9 9 9 9 9


ch as: 9


A) Federal Deposit Insurance Corporation — FDIC.
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B) Office of the Comptroller of the Currency — OCC.
9 9 9 9 9 9 9 9


C) International Monetary Fund — IMF. 9 9 9 9


D) World Bank — 9 9


WB. Answer: A
9 9 9


Diff: 2 9


L.O.: 1.1 The Global Financial Marketplace Skill:
9 9 9 9 9 9


9Recognition
AACSB: Application of knowledge
9 9 9 9




5) The modern eurocurrency market was born shortly after:
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A) World War II. 9 9


B) World War I. 9 9


C) Korean War. 9


D) Bosnian War. 9


Answer: A Diff
9 9 9


:1 9


L.O.: 1.1 The Global Financial Marketplace Skill:
9 9 9 9 9 9


9Recognition
AACSB: Application of knowledge
9 9 9 9




6) The reference rate of interest in the eurocurrency market is the:
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A) London Interbank Offered Rate. 9 9 9


B) Prima rate. 9


C) Federal funds rate. 9 9


D) Treasury rate. 9


Answer: A Diff
9 9 9


:1 9


L.O.: 1.1 The Global Financial Marketplace Skill:
9 9 9 9 9 9


9Recognition
AACSB: Application of knowledge
9 9 9 9




7) Interest spreads in the eurocurrency market are small for many reasons EXCEPT:
9 9 9 9 9 9 9 9 9 9 9


A) Eurocurrency loans are secured loans. 9 9 9 9


B) Eurocurrency deposits and loans are made in amounts of $500,000 or more on an unsecured ba
9 9 9 9 9 9 9 9 9 9 9 9 9 9 9


sis.
C) The eurocurrency is a wholesale market.
9 9 9 9 9


D) Borrowers are usually large corporations or government entities.
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Answer: A 9


Diff: 2 9


L.O.: 1.1 The Global Financial Marketplace Skill:
9 9 9 9 9 9


9Recognition
AACSB: Application of knowledge
9 9 9 9




2
Copyright © 2023 Pearson Education, Inc.
9 9 9 9 9

, https://browsegrades.net/singlePaper/416756/testbank-and-solution-manua-for-multinational-bu


8) Multinational enterprises (MNEs) are firms, both for-profit companies and not-for-
9 9 9 9 9 9 9 9 9


profit organizations, that have operations in more than one country, and conduct their business thro
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ugh foreign subsidiaries, branches, or joint ventures with host country firms.
9 9 9 9 9 9 9 9 9 9


Answer: TRUE Di 9 9


ff: 1 9


L.O.: 1.1 The Global Financial Marketplace Skill:
9 9 9 9 9 9


9 Recognition
AACSB: Application of knowledge 9 9 9 9




9) Ownership, control, and governance changes radically across the world. The publicly traded co
9 9 9 9 9 9 9 9 9 9 9 9


mpany is not the dominant global business organization—the privately held or family-
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owned business is the prevalent structure—
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and their goals and measures of performance differ dramatically.
9 9 9 9 9 9 9 9


Answer: TRUE Di 9 9


ff: 1 9


L.O.: 1.1 The Global Financial Marketplace Skill:
9 9 9 9 9 9


9 Recognition
AACSB: Application of knowledge 9 9 9 9




10) The securities at the heart of the global capital markets are the Mortgage Backed Securities (
9 9 9 9 9 9 9 9 9 9 9 9 9 9 9


MBS). The health and security of the global financial system rely on the quality of these securities
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.
Answer: FALSE D 9 9


iff: 1 9


L.O.: 1.1 The Global Financial Marketplace Skill:
9 9 9 9 9 9


9 Recognition
AACSB: Application of knowledge 9 9 9 9




11) The U.S. dollar has been the focal point of currency trading since the 1940s. As a result, mo
9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9


st of the world's currencies are quoted against the dollar.
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Answer: TRUE Di 9 9


ff: 1 9


L.O.: 1.1 The Global Financial Marketplace Skill:
9 9 9 9 9 9


9 Recognition
AACSB: Application of knowledge 9 9 9 9




12) Several of the world's major currency exchange rates follow a specific quotation convention th
9 9 9 9 9 9 9 9 9 9 9 9 9


at is the result of tradition and history. The exchange rate between the U.S. dollar and the euro is al
9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9


ways quoted as "dollars per euro."
9 9 9 9 9


Answer: TRUE Di 9 9


ff: 1 9


L.O.: 1.1 The Global Financial Marketplace Skill:
9 9 9 9 9 9


9 Recognition
AACSB: Application of knowledge 9 9 9 9




3
Copyright © 2023 Pearson Education, Inc.
9 9 9 9 9

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