1) Financial zglobalization zhas zNOT zresulted zin:
A) continuing zimbalances zof zbalance zof zpayments.
B) an zincrease zin zquantity zand zspeed zin zthe zflow zof zcapital zacross zthe zworld.
C) capital zmarkets zless zopen zand za zdecrease zin zthe zavailability zof zcapital zfor zmany
zorganizations.
D) uniform zways zof zownership, zcontrol, zand zgovernance zacross zthe
zworld. zAnswer: z D
Diff: z1
L.O.: z 1.1 zThe zGlobal zFinancial zMarketplace
zSkill: z Recognition
AACSB: z z Application zof zknowledge
2) Financial zglobalization zhas zNOT zresulted zin:
A) continuing zimbalances zof zbalance zof zpayments.
B) an zincrease zin zquantity zand zspeed zin zthe zflow zof zcapital zacross zthe zworld.
C) capital zmarkets zmore zopen zand zan zincrease zin zthe zavailability zof zcapital zfor
zmany zorganizations.
D) an zincrease zin zthe zflow zof zcapital zinto zand zout zof zindustrialized
zmarkets. zAnswer: z C
Diff: z1
L.O.: z 1.1 zThe zGlobal zFinancial zMarketplace
zSkill: z Recognition
AACSB: z z Application zof zknowledge
3) The zinstitutions zof zglobal zfinance zare:
A) central zbanks.
B) commercial zbanks.
C) investment zbanks.
D) All zof zthe zabove zare zinstitutions zof zglobal
zfinance. zAnswer: z D
Diff: z1
L.O.: z 1.1 zThe zGlobal zFinancial zMarketplace
zSkill: z Recognition
AACSB: z z Application zof zknowledge
,4) A zmajor zcost zavoided zin zthe zeurocurrency zmarkets zis zthe zpayment zof zdeposit
zinsurance zfees, zsuch zas:
A) Federal zDeposit zInsurance zCorporation z— zFDIC.
B) Office zof zthe zComptroller zof zthe zCurrency z— zOCC.
C) International zMonetary zFund z— zIMF.
D) World zBank z—
zWB. zAnswer: z A
Diff: z2
L.O.: z 1.1 zThe zGlobal zFinancial zMarketplace
zSkill: z Recognition
AACSB: z z Application zof zknowledge
5) The zmodern zeurocurrency zmarket zwas zborn zshortly zafter:
A) World zWar zII.
B) World zWar zI.
C) Korean zWar.
D) Bosnian
zWar. zAnswer:
z A z Diff: z1
L.O.: z 1.1 zThe zGlobal zFinancial zMarketplace
zSkill: z Recognition
AACSB: z z Application zof zknowledge
6) The zreference zrate zof zinterest zin zthe zeurocurrency zmarket zis zthe:
A) London zInterbank zOffered zRate.
B) Prima zrate.
C) Federal zfunds zrate.
D) Treasury
zrate. zAnswer:
z A z Diff: z1
L.O.: z 1.1 zThe zGlobal zFinancial zMarketplace
zSkill: z Recognition
AACSB: z z Application zof zknowledge
7) Interest zspreads zin zthe zeurocurrency zmarket zare zsmall zfor zmany zreasons zEXCEPT:
A) Eurocurrency zloans zare zsecured zloans.
B) Eurocurrency zdeposits zand zloans zare zmade zin zamounts zof z$500,000 zor zmore zon zan
zunsecured zbasis.
C) The zeurocurrency zis za zwholesale zmarket.
D) Borrowers zare zusually zlarge zcorporations zor zgovernment
zentities. zAnswer: z A
Diff: z2
L.O.: z 1.1 zThe zGlobal zFinancial zMarketplace
zSkill: z Recognition
AACSB: z z Application zof zknowledge
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