International Financial Management Exam Questions With Correct Answers
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Course
International Financial Management
Institution
International Financial Management
International Financial Management Exam
Questions With Correct Answers
True or False: Ownership, control, and governance changes radically across the world. The
publicly traded company is not the dominant global business organization-the privately held or
family-owned business is the prevalent ...
International Financial Management Exam
Questions With Correct Answers
True or False: Ownership, control, and governance changes radically across the world. The
publicly traded company is not the dominant global business organization-the privately held or
family-owned business is the prevalent structure-and their goals and measures of performance
differ dramatically. - answer✔True
True or False: Multinational enterprises (MNEs) are firms, both for profit companies and not-for-
profit organizations, that have operations in more than one country, and conduct their business
through foreign subsidiaries, branches, or joint ventures with host country firms. -
answer✔True
The modern eurocurrency market was born shortly after: - answer✔World War II
Interest spreads in the eurocurrency market are small for many reasons EXCEPT:
a) The Eurocurrency is a wholesale market.
b) Eurocurrency deposits and loans are made in amounts of $500,000 or more on an unsecured
basis.
c)Borrowers are usually large corporations or government entities.
d) Eurocurrency loans are secured loans. - answer✔D. Eurocurrency loans are secured loans
True or False: Comparative advantage shifts over time as less developed countries become more
developed and realize their latent opportunities. - answer✔True
Which of the following is NOT a reason governments interfere with comparative advantage?
a. All are reasons governments interfere with comparative advantage.
b. national self-sufficiency in defense-related industries
c. Governments promote economic development.
d. Governments attempt to achieve full employment. - answer✔A. All are reasons governments
interfere with comparative advantage.
d. uniform ways of ownership, control, and governance across the world. - answer✔d. uniform
ways of ownership, control, and governance across the world.
True or False: A eurodollar deposit is a demand deposit. - answer✔False
A well-established, large U.S.-based MNE will probably NOT be able to overcome which of the
following obstacles to maximizing firm value?
Select one:
a. an open market place
b. access to capital
c. high quality strategic management
d. None of these - answer✔d. None of these
True or False: The theory of comparative advantage owes it origins to Ben Bernanke as
described in his book The Wealth of Bankers. - answer✔False- The theory of comparative
advantage owes its origins to Adam Smith as described in his book The Wealth of Nations
The concept of relative comparative advantage's origins lie in:
Select one:
a. Adam Smith's work of 1776.
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