100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
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

Exam (elaborations)

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

 14 views  0 purchase
  • Course
  • Multinational Business Finance 16th ed. by
  • Institution
  • Multinational Business Finance 16th Ed. By

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

Preview 4 out of 464  pages

  • September 13, 2024
  • 464
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:
  • Multinational Business Finance 16th ed. by
  • Multinational Business Finance 16th ed. by
avatar-seller
agradesolutions
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
9 9 9 9 9 9




1.1 The Global Financial Marketplace
9 9 9




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.
9 9 9 9 9


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:
9 9 9 9 9 9 9


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:
9 9 9 9 9 9 9 9 9 9


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.
9 9 9 9 9 9 9 9


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
9 9 9 9 9 9 9 9 9 9 9 9 9 9


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-
9 9 9 9 9 9 9 9 9 9 9


owned business is the prevalent structure—
9 9 9 9 9


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
9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9


.
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.
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




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

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 agradesolutions. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $16.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

78998 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$16.99
  • (0)
  Add to cart