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Test Bank for: Multinational Business Finance 16th Edition By (Eiteman/Stonehill/Moffett), ISBN: 9780137496013, All 18 Chapters Covered, |Complete Solution | ultimate guide A+.$20.99
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Test Bank for: Multinational Business Finance 16th Edition By (Eiteman/Stonehill/Moffett), ISBN: 9780137496013, All 18 Chapters Covered, |Complete Solution | ultimate guide A+.
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Course
Multinational Business Finance 16th Ed. By Eitema
Institution
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...
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’
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’
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’
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’
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’
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’
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’
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’
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’
AACSB: Application of knowledge k r i ’ | i ’ kri’|i’ kri’|i’
4
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