100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
Test Bank for Multinational Business Finance 16th Edition By (Eiteman/Stonehill/Moffett), ISBN: 9780137496013, All 18 Chapters Covered, |Complete Solution |Guide A+.$18.49
Add to cart
Test Bank for Multinational Business Finance 16th Edition By (Eiteman/Stonehill/Moffett), ISBN: 9780137496013, All 18 Chapters Covered, |Complete Solution |Guide A+.
22 views 1 purchase
Course
Multinational Business Finance 16th Ed. By Eitema
Institution
Multinational Business Finance 16th Ed. By Eitema
Test Bank for Multinational Business Finance 16th Edition By (Eiteman/Stonehill/Moffett), ISBN: 9780137496013, All 18 Chapters Covered, |Complete Solution |Guide A+.Test Bank for Multinational Business Finance 16th Edition By (Eiteman/Stonehill/Moffett), ISBN: 9780137496013, All 18 Chapters Cover...
1.1 The Global Financial Marketplace i’|i’ i’|i’ i’|i’
1) Financial globalization has NOT resulted in: i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
A) continuing imbalances of balance of payments. i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
B) an increase in quantity and speed in the flow of capital across the world.
i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
C) capital markets less open and a decrease in the availability of capital for many
i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
organizations.
i’|i’
D) uniform ways of ownership, control, and governance across the i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
world.Answer: D
i’|i’ i’| i’ |i’
Diff: 1 i’|i’
L.O.: 1.1 The Global Financial
i’|i’ i’|i’ i’|i’ i’|i’
MarketplaceSkill: Recognition
i’|i’ i’| i’ | i’
AACSB: Application of knowledge i ’ | i ’ i’|i’ i’|i’
2) Financial globalization has NOT resulted in: i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
A) continuing imbalances of balance of payments. i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
B) an increase in quantity and speed in the flow of capital across the world.
i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
C) capital markets more open and an increase in the availability of capital for
i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
manyorganizations.
i’|i’ i’|
D) an increase in the flow of capital into and out of industrialized
i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
markets.Answer: C
i’|i’ i’| i’ |i’
Diff: 1 i’|i’
L.O.: 1.1 The Global Financial
i’|i’ i’|i’ i’|i’ i’|i’
MarketplaceSkill: Recognition
i’|i’ i’| i’ | i’
AACSB: Application of knowledge i ’ | i ’ i’|i’ i’|i’
3) The institutions of global finance are:
i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
A) central banks. i’|i’
B) commercial banks. i’|i’
C) investment banks. i’|i’
D) All of the above are institutions of global
i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
finance.Answer: D
i’|i’ i’| i’ |i’
Diff: 1 i’|i’
L.O.: 1.1 The Global Financial
i’|i’ i’|i’ i’|i’ i’|i’
MarketplaceSkill: Recognition
i’|i’ i’| i’ | i’
AACSB: Application of knowledge i ’ | i ’ i’|i’ i’|i’
2
,4) A major cost avoided in the eurocurrency markets is the payment of deposit insurance
i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
fees,such as:
i’|i’ i’| i’|i’
A) Federal Deposit Insurance Corporation — FDIC. i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
B) Office of the Comptroller of the Currency — OCC. i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
C) International Monetary Fund — IMF. i’|i’ i’|i’ i’|i’ i’|i’
D) World Bank — i’|i’ i’|i’
WB.Answer: A
i’|i’ i’| i’ |i’
Diff: 2 i’|i’
L.O.: 1.1 The Global Financial
i’|i’ i’|i’ i’|i’ i’|i’
MarketplaceSkill: Recognition
i’|i’ i’| i’ | i’
AACSB: Application of knowledge i ’ | i ’ i’|i’ i’|i’
5) The modern eurocurrency market was born shortly after:
i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
A) World War II. i’|i’ i’|i’
B) World War I. i’|i’ i’|i’
C) Korean War. i’|i’
D) Bosnian
War.Answer:
i’|i’ i’| i’|i’ i’|i’
A Diff: 1
i’ | i’ i’|i’ i’|i’
L.O.: 1.1 The Global Financial
i’|i’ i’|i’ i’|i’ i’|i’
MarketplaceSkill: Recognition
i’|i’ i’| i’ | i’
AACSB: Application of knowledge i ’ | i ’ i’|i’ i’|i’
6) The reference rate of interest in the eurocurrency market is the:
i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
A) London Interbank Offered Rate. i’|i’ i’|i’ i’|i’
B) Prima rate. i’|i’
C) Federal funds rate. i’|i’ i’|i’
D) Treasury
rate.Answer:
i’|i’ i’| i’|i’ i’|i’
A Diff: 1
i’ |i’ i’|i’ i’|i’
L.O.: 1.1 The Global Financial
i’|i’ i’|i’ i’|i’ i’|i’
MarketplaceSkill: Recognition
i’|i’ i’| i’ | i’
AACSB: Application of knowledge i ’ | i ’ i’|i’ i’|i’
7) Interest spreads in the eurocurrency market are small for many reasons EXCEPT:
i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
A) Eurocurrency loans are secured loans. i’|i’ i’|i’ i’|i’ i’|i’
B) Eurocurrency deposits and loans are made in amounts of $500,000 or more on an i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
unsecuredbasis.
i’|i’ i’|
C) The eurocurrency is a wholesale market.
i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
D) Borrowers are usually large corporations or government i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
entities.Answer: A
i’|i’ i’| i ’ | i’
Diff: 2 i’|i’
L.O.: 1.1 The Global Financial
i’|i’ i’|i’ i’|i’ i’|i’
MarketplaceSkill: Recognition
i’|i’ i’| i’ | i’
AACSB: Application of knowledge i ’ | i ’ i’|i’ i’|i’
3
, 8) Multinational enterprises (MNEs) are firms, both for-profit companies and not-for-profit i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
organizations, that have operations in more than one country, and conduct their business
i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
throughforeign subsidiaries, branches, or joint ventures with host country firms.
i’|i’ i’| i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
Answer:
TRUEDiff: 1
i’|i’ i’| i’|i’
L.O.: 1.1 The Global Financial
i’|i’ i’|i’ i’|i’ i’|i’
MarketplaceSkill: Recognition
i’|i’ i’| i’ | i’
AACSB: Application of knowledge i ’ | i ’ i’|i’ i’|i’
9) Ownership, control, and governance changes radically across the world. The publicly i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
tradedcompany is not the dominant global business organization—the privately held or
i’|i’ i’| i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
family-ownedbusiness is the prevalent structure—and their goals and measures of
i’|i’ i’| i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
L.O.: 1.1 The Global Financial
i’|i’ i’|i’ i’|i’ i’|i’
MarketplaceSkill: Recognition
i’|i’ i’| i’ | i’
AACSB: Application of knowledge i ’ | i ’ i’|i’ i’|i’
10) The securities at the heart of the global capital markets are the Mortgage Backed
i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
Securities(MBS). The health and security of the global financial system rely on the
i’|i’ i’| i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
quality of these securities.
i’|i’ i’|i’ i’|i’ i’|i’
Answer:
FALSEDiff: 1
i’|i’ i’| i’|i’
L.O.: 1.1 The Global Financial
i’|i’ i’|i’ i’|i’ i’|i’
MarketplaceSkill: Recognition
i’|i’ i’| i’ | i’
AACSB: Application of knowledge i ’ | i ’ i’|i’ i’|i’
11) The U.S. dollar has been the focal point of currency trading since the 1940s. As a
i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
result,most of the world's currencies are quoted against the dollar.
i’|i’ i’| i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
Answer:
TRUEDiff: 1
i’|i’ i’| i’|i’
L.O.: 1.1 The Global Financial
i’|i’ i’|i’ i’|i’ i’|i’
MarketplaceSkill: Recognition
i’|i’ i’| i’ | i’
AACSB: Application of knowledge i ’ | i ’ i’|i’ i’|i’
12) Several of the world's major currency exchange rates follow a specific quotation
i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
convention that is the result of tradition and history. The exchange rate between the U.S.
i’|i’ i’| i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
dollar and the eurois always quoted as "dollars per euro."
i’|i’ i’|i’ i’|i’ i’|i’ i’| i’|i’ i’|i’ i’|i’ i’|i’ i’|i’ i’|i’
Answer:
TRUEDiff: 1
i’|i’ i’| i’|i’
L.O.: 1.1 The Global Financial
i’|i’ i’|i’ i’|i’ i’|i’
MarketplaceSkill: Recognition
i’|i’ i’| i’ | i’
AACSB: Application of knowledge i ’ | i ’ i’|i’ i’|i’
4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Wisdoms. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $18.49. You're not tied to anything after your purchase.
