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Multinational Business Finance 16th Ed. By Eitema

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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 | ultimate guide A+.Test Bank for: Multinational Business Finance 16th Edition By (Eiteman/Stonehill/Moffett), ISBN: 9780137496013, All 18 Cha...

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9780137496013
multinational business finance
multinational business finance 16th edition
test bank for multinational business finance 16th
test bank for multinational business finance 16th

Institution Multinational Business Finance 16th Ed. By Eitema
Course Multinational Business Finance 16th Ed. By Eitema

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1

,Multinational Business Finance, 16e (Eiteman/Stonehill/Moffett) kri’|i’ kri’|i’ kri’|i’ kri’|i’

Chapter 1 Multinational Financial Management: Opportunities and Challenges
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

1.1 The Global Financial Marketplace kri’|i’ kri’|i’ kri’|i’

1) Financial globalization has NOT resulted in: kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

A) continuing imbalances of balance of payments. kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

B) an increase in quantity and speed in the flow of capital across the world.
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

C) capital markets less open and a decrease in the availability of capital for many
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

organizations.
kri’|i’

D) uniform ways of ownership, control, and governance across the kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

world.Answer: D
kri’|i’ kri’| kri’ |i’

Diff: 1 kri’|i’

L.O.: 1.1 The Global Financial
kri’|i’ kri’|i’ kri’|i’ kri’|i’

MarketplaceSkill: Recognition
kri’|i’ kri’| kr i’ |i’

AACSB: Application of knowledge k r i ’ | i ’ kri’|i’ kri’|i’

2) Financial globalization has NOT resulted in: kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

A) continuing imbalances of balance of payments. kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

B) an increase in quantity and speed in the flow of capital across the world.
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

C) capital markets more open and an increase in the availability of capital
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

for manyorganizations.
kri’|i’ kri’|i’ kri’|

D) an increase in the flow of capital into and out of
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

industrialized markets.Answer: C
kri’|i’ kri’|i’ kri’| kri’ |i’

Diff: 1 kri’|i’

L.O.: 1.1 The Global Financial
kri’|i’ kri’|i’ kri’|i’ kri’|i’

MarketplaceSkill: Recognition
kri’|i’ kri’| kr i’ |i’

AACSB: Application of knowledge k r i ’ | i ’ kri’|i’ kri’|i’

3) The institutions of global finance are:
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

A) central banks. kri’|i’

B) commercial banks. kri’|i’

C) investment banks. kri’|i’

D) All of the above are institutions of global
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

finance.Answer: D
kri’|i’ kri’| kri’ |i’

Diff: 1 kri’|i’

L.O.: 1.1 The Global Financial
kri’|i’ kri’|i’ kri’|i’ kri’|i’

MarketplaceSkill: Recognition
kri’|i’ kri’| kr i’ |i’

AACSB: Application of knowledge k r i ’ | i ’ kri’|i’ kri’|i’

2

,4) A major cost avoided in the eurocurrency markets is the payment of deposit
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

insurance fees,such as:
kri’|i’ kri’|i’ kri’| kri’|i’

A) Federal Deposit Insurance Corporation — FDIC. kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

B) Office of the Comptroller of the Currency — OCC. kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

C) International Monetary Fund — IMF. kri’|i’ kri’|i’ kri’|i’ kri’|i’

D) World Bank — kri’|i’ kri’|i’

WB.Answer: A
kri’|i’ kri’| kri’ |i’

Diff: 2 kri’|i’

L.O.: 1.1 The Global Financial kri’|i’ kri’|i’ kri’|i’ kri’|i’

MarketplaceSkill: Recognition
kri’|i’ kri’| kr i’ |i’

AACSB: Application of knowledge k r i ’ | i ’ kri’|i’ kri’|i’

5) The modern eurocurrency market was born shortly after:
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

A) World War II. kri’|i’ kri’|i’

B) World War I. kri’|i’ kri’|i’

C) Korean War. kri’|i’

D) Bosnian
War.Answer:
kri’|i’ kri’| kri’|i’ kri’|i’

A Diff: 1
kr i’ | i’ kri’|i’ kri’|i’

L.O.: 1.1 The Global Financial kri’|i’ kri’|i’ kri’|i’ kri’|i’

MarketplaceSkill: Recognition
kri’|i’ kri’| kr i’ |i’

AACSB: Application of knowledge k r i ’ | i ’ kri’|i’ kri’|i’

6) The reference rate of interest in the eurocurrency market is the:
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

A) London Interbank Offered Rate. kri’|i’ kri’|i’ kri’|i’

B) Prima rate. kri’|i’

C) Federal funds rate. kri’|i’ kri’|i’

D) Treasury
rate.Answer:
kri’|i’ kri’| kri’|i’

A Diff: 1
kri’|i’ k r i ’ | i ’ kri’|i’ kri’|i’

L.O.: 1.1 The Global Financial kri’|i’ kri’|i’ kri’|i’ kri’|i’

MarketplaceSkill: Recognition
kri’|i’ kri’| kr i’ |i’

AACSB: Application of knowledge k r i ’ | i ’ kri’|i’ kri’|i’

7) Interest spreads in the eurocurrency market are small for many reasons EXCEPT:
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

A) Eurocurrency loans are secured loans. kri’|i’ kri’|i’ kri’|i’ kri’|i’

B) Eurocurrency deposits and loans are made in amounts of $500,000 or more on kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

an unsecuredbasis.
kri’|i’ kri’|i’ kri’|

C) The eurocurrency is a wholesale market. kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

D) Borrowers are usually large corporations or government kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

entities.Answer: A
kri’|i’ kri’| k r i ’ | i’

Diff: 2 kri’|i’

L.O.: 1.1 The Global Financial kri’|i’ kri’|i’ kri’|i’ kri’|i’

MarketplaceSkill: Recognition
kri’|i’ kri’| kr i’ |i’

AACSB: Application of knowledge k r i ’ | i ’ kri’|i’ kri’|i’

3

, 8) Multinational enterprises (MNEs) are firms, both for-profit companies and not-for- kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

profit organizations, that have operations in more than one country, and conduct their
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

business throughforeign subsidiaries, branches, or joint ventures with host country
kri’|i’ kri’|i’ kri’| kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

firms.
kri’|i’

Answer:
TRUEDiff: 1
kri’|i’ kri’| kri’|i’

L.O.: 1.1 The Global Financial
kri’|i’ kri’|i’ kri’|i’ kri’|i’

MarketplaceSkill: Recognition
kri’|i’ kri’| kr i’ |i’

AACSB: Application of knowledge k r i ’ | i ’ kri’|i’ kri’|i’

9) Ownership, control, and governance changes radically across the world. The kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

publicly tradedcompany is not the dominant global business organization—the
kri’|i’ kri’|i’ kri’| kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

privately held or family-ownedbusiness is the prevalent structure—and their goals
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’| kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

and measures of performance differ dramatically.
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

Answer:
TRUEDiff: 1
kri’|i’ kri’| kri’|i’

L.O.: 1.1 The Global Financial
kri’|i’ kri’|i’ kri’|i’ kri’|i’

MarketplaceSkill: Recognition
kri’|i’ kri’| kr i’ |i’

AACSB: Application of knowledge k r i ’ | i ’ kri’|i’ kri’|i’

10) The securities at the heart of the global capital markets are the Mortgage
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

Backed Securities(MBS). The health and security of the global financial system
kri’|i’ kri’|i’ kri’| kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

rely on the quality of these securities.
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

Answer:
FALSEDiff: 1
kri’|i’ kri’| kri’|i’

L.O.: 1.1 The Global Financial
kri’|i’ kri’|i’ kri’|i’ kri’|i’

MarketplaceSkill: Recognition
kri’|i’ kri’| kr i’ |i’

AACSB: Application of knowledge k r i ’ | i ’ kri’|i’ kri’|i’

11) The U.S. dollar has been the focal point of currency trading since the 1940s.
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

As a result,most of the world's currencies are quoted against the dollar.
kri’|i’ kri’|i’ kri’|i’ kri’| kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

Answer:
TRUEDiff: 1
kri’|i’ kri’| kri’|i’

L.O.: 1.1 The Global Financial
kri’|i’ kri’|i’ kri’|i’ kri’|i’

MarketplaceSkill: Recognition
kri’|i’ kri’| kr i’ |i’

AACSB: Application of knowledge k r i ’ | i ’ kri’|i’ kri’|i’

12) Several of the world's major currency exchange rates follow a specific quotation
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

conventionthat is the result of tradition and history. The exchange rate between the
kri’|i’ kri’| kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

U.S. dollar and the eurois always quoted as "dollars per euro."
kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’| kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’ kri’|i’

Answer:
TRUEDiff: 1
kri’|i’ kri’| kri’|i’

L.O.: 1.1 The Global Financial
kri’|i’ kri’|i’ kri’|i’ kri’|i’

MarketplaceSkill: Recognition
kri’|i’ kri’| kr i’ |i’

AACSB: Application of knowledge k r i ’ | i ’ kri’|i’ kri’|i’

4

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