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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 $20.99   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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  • Multinational Business Finance 16th ed. by Eiteman
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  • Multinational Business Finance 16th Ed. By Eiteman

Test Bank for Multinational Business Finance 16th Edition By (Eiteman/Stonehill/Moffett), ISBN: 9783, All 18 Chapters Covered, Verified Latest Edition Author(s) David K. Eiteman; Arthur I. Stonehill; Michael H. Moffett Publisher Pearson ISBN 9783, X ISBN 9783, X ISBN 9780137669134, ISBN 9780137669...

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  • October 1, 2024
  • 572
  • 2024/2025
  • Exam (elaborations)
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  • Multinational Business Finance 16th ed. by Eiteman
  • Multinational Business Finance 16th ed. by Eiteman
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,MultinationalaBusinessaFinance,a16ea(Eiteman/Stonehill/Moffett)
Chaptera1 MultinationalaFinancialaManagement:aOpportunitiesaandaChallenges

1.1 TheaGlobalaFinancialaMarketplace

1) FinancialaglobalizationahasaNOTaresultedain:
A) continuingaimbalancesaofabalanceaofapayments.
B) anaincreaseainaquantityaandaspeedainatheaflowaofacapitalaacrossatheaworld.
C) capitalamarketsalessaopenaandaaadecreaseainatheaavailabilityaofacapitalaforamanyaorganizati
ons.
D) uniformawaysaofaownership,acontrol,aandagovernanceaacrossatheaw
orld.aAnswer:aD
Diff:a1
L.O.:a1.1aTheaGlobalaFinancialaMarketplaceaS
kill:aRecognition
AACSB:a Applicationaofaknowledge

2) FinancialaglobalizationahasaNOTaresultedain:
A) continuingaimbalancesaofabalanceaofapayments.
B) anaincreaseainaquantityaandaspeedainatheaflowaofacapitalaacrossatheaworld.
C) capitalamarketsamoreaopenaandaanaincreaseainatheaavailabilityaofacapitalafor
amanyaorganizations.
D) anaincreaseainatheaflowaofacapitalaintoaandaoutaofaindustrializedam
arkets.aAnswer:aC
Diff:a1
L.O.:a1.1aTheaGlobalaFinancialaMarketplaceaS
kill:aRecognition
AACSB:a Applicationaofaknowledge

3) Theainstitutionsaofaglobalafinanceaare:
A) centralabanks.
B) commercialabanks.
C) investmentabanks.
D) Allaofatheaaboveaareainstitutionsaofaglobalafina
nce.aAnswer:aD
Diff:a1
L.O.:a1.1aTheaGlobalaFinancialaMarketplaceaS
kill:aRecognition
AACSB:a Applicationaofaknowledge




1

,4) Aamajoracostaavoidedainatheaeurocurrencyamarketsaisatheapaymentaofadepositainsuranc
eafees,asuchaas:
A) FederalaDepositaInsuranceaCorporationa—aFDIC.
B) OfficeaofatheaComptrolleraofatheaCurrencya—aOCC.
C) InternationalaMonetaryaFunda—aIMF.
D) WorldaBanka—
aWB.aAnswer:aA
Diff:a2
L.O.:a1.1aTheaGlobalaFinancialaMarketplaceaS
kill:aRecognition
AACSB:a Applicationaofaknowledge

5) Theamodernaeurocurrencyamarketawasabornashortlyaafter:
A) WorldaWaraII.
B) WorldaWaraI.
C) KoreanaWar.
D) BosnianaWar
.aAnswer:aaaAa
Diff:a1
L.O.:a1.1aTheaGlobalaFinancialaMarketplaceaS
kill:aRecognition
AACSB:a Applicationaofaknowledge

6) Theareferencearateaofainterestainatheaeurocurrencyamarketaisathe:
A) LondonaInterbankaOfferedaRate.
B) Primaarate.
C) Federalafundsarate.
D) Treasuryarate
.aAnswer:aaaAa
Diff:a1
L.O.:a1.1aTheaGlobalaFinancialaMarketplaceaS
kill:aRecognition
AACSB:a Applicationaofaknowledge

7) InterestaspreadsainatheaeurocurrencyamarketaareasmallaforamanyareasonsaEXCEPT:
A) Eurocurrencyaloansaareasecuredaloans.
B) Eurocurrencyadepositsaandaloansaareamadeainaamountsaofa$500,000aoramoreaonaanaun
securedabasis.
C) Theaeurocurrencyaisaaawholesaleamarket.
D) Borrowersaareausuallyalargeacorporationsaoragovernmentaentit
ies.aAnswer:aA
Diff:a2
L.O.:a1.1aTheaGlobalaFinancialaMarketplaceaS
kill:aRecognition
AACSB:a Applicationaofaknowledge



2

, 8) Multinationalaenterprisesa(MNEs)aareafirms,abothafor-profitacompaniesaandanot-for-
profitaorganizations,athatahaveaoperationsainamoreathanaoneacountry,aandaconductatheirabusi
nessathroughaforeignasubsidiaries,abranches,aorajointaventuresawithahostacountryafirms.
Answer:aTRUEaDi
ff:a1
L.O.:a1.1aTheaGlobalaFinancialaMarketplaceaS
kill:aRecognition
AACSB:a Applicationaofaknowledge

9) Ownership,acontrol,aandagovernanceachangesaradicallyaacrossatheaworld.aTheapubliclyat
radedacompanyaisanotatheadominantaglobalabusinessaorganization—
theaprivatelyaheldaorafamily-ownedabusinessaisatheaprevalentastructure—
andatheiragoalsaandameasuresaofaperformanceadifferadramatically.
Answer:aTRUEaDi
ff:a1
L.O.:a1.1aTheaGlobalaFinancialaMarketplaceaS
kill:aRecognition
AACSB:a Applicationaofaknowledge

10) TheasecuritiesaatatheaheartaofatheaglobalacapitalamarketsaareatheaMortgageaBackedaSe
curitiesa(MBS).aTheahealthaandasecurityaofatheaglobalafinancialasystemarelyaonatheaquality
aofatheseasecurities.
Answer:aFALSEaD
iff:a1
L.O.:a1.1aTheaGlobalaFinancialaMarketplaceaS
kill:aRecognition
AACSB:a Applicationaofaknowledge

11) TheaU.S.adollarahasabeenatheafocalapointaofacurrencyatradingasinceathea1940s.aAsa
aaresult,amostaofatheaworld'sacurrenciesaareaquotedaagainstatheadollar.
Answer:aTRUEaDi
ff:a1
L.O.:a1.1aTheaGlobalaFinancialaMarketplaceaS
kill:aRecognition
AACSB:a Applicationaofaknowledge

12) Severalaofatheaworld'samajoracurrencyaexchangearatesafollowaaaspecificaquotationaconv
entionathataisathearesultaofatraditionaandahistory.aTheaexchangearateabetweenatheaU.S.adolla
raandatheaeuroaisaalwaysaquotedaasa"dollarsaperaeuro."
Answer:aTRUEaDi
ff:a1
L.O.:a1.1aTheaGlobalaFinancialaMarketplaceaS
kill:aRecognition
AACSB:a Applicationaofaknowledge




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