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Question 1
Free
Multiple Choice

Financial globalization has NOT resulted in:

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A

continuing imbalances of balance of payments.

B

an increase in quantity and speed in the flow of capital across the world.

C

capital markets less open and a decrease in the availability of capital for many organizations.

D

uniform ways of ownership, control, and governance across the world.

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Question 2
Free
Multiple Choice

Financial globalization has NOT resulted in:

Choose correct answer/s
A

continuing imbalances of balance of payments.

B

an increase in quantity and speed in the flow of capital across the world.

C

capital markets more open and an increase in the availability of capital for many organizations.

D

an increase in the flow of capital into and out of industrialized markets.

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Question 3
Free
Multiple Choice

The institutions of global finance are:

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A

central banks.

B

commercial banks.

C

investment banks.

D

All of the above are institutions of global finance.

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Question 4
Free
Multiple Choice

A well-established, large U.S.-based MNE will probably NOT be able to overcome which of the following obstacles to maximizing firm value?

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A

an open marketplace

B

high-quality strategic management

C

access to capital

D

none of the above

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Question 5
Free
Multiple Choice

A well-established, large, China-based MNE will probably be most adversely affected by which of the following elements of firm value?

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A

an open marketplace

B

high-quality strategic management

C

access to capital

D

access to qualified labor pool

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Question 6
Multiple Choice

A well-established, large, Brazil-based MNE will probably be most adversely affected by which of the following elements of firm value?

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A
an open marketplace
B
high-quality strategic management
C
access to capital
D
access to qualified labor pool
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Question 7
Multiple Choice

A major cost avoided in the eurocurrency markets is the payment of deposit insurance fees, such as:

Choose correct answer/s
A
Federal Deposit Insurance Corporation - FDIC.
B
Office of the Comptroller of the Currency - OCC.
C
International Monetary Fund - IMF.
D
World Bank - WB.
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Question 8
Multiple Choice

The modern eurocurrency market was born shortly after:

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A
World War II.
B
World War I.
C
Korean War.
D
Bosnian War.
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Question 9
Multiple Choice

The reference rate of interest in the eurocurrency market is the:

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A
London Interbank Offered Rate.
B
Prima rate.
C
Federal funds rate.
D
Treasury rate.
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Question 10
Multiple Choice

Interest spreads in the eurocurrency market are small for many reasons EXCEPT:

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A
Eurocurrency loans are secured loans.
B
Eurocurrency deposits and loans are made in amounts of $500,000 or more on an unsecured basis.
C
The eurocurrency is a wholesale market.
D
Borrowers are usually large corporations or government entities.
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Question 11
True/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.

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True
False
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Question 12
True/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.

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True
False
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Question 13
True/False

The securities at the heart of the global capital markets are the Mortgage Backed Securities (MBS). The health and security of the global financial system rely on the quality of these securities.

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True
False
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Question 14
True/False

The U.S. dollar has been the focal point of currency trading since the 1940s. As a result, most of the world's currencies are quoted against the dollar.

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True
False
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Question 15
True/False

Several of the world's major currency exchange rates follow a specific quotation convention that is the result of tradition and history. The exchange rate between the U.S. dollar and the euro is always quoted as "dollars per euro."

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True
False
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Question 16
True/False

Several of the world's major currency exchange rates follow a specific quotation convention that is the result of tradition and history. The exchange rate between the U.S. dollar and the British pound is always quoted as "dollars per pound."

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True
False
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Question 17
True/False

Several of the world's major currency exchange rates follow a specific quotation convention that is the result of tradition and history. The exchange rate between the U.S. dollar and the Japanese yen is always quoted as "dollars per Japanese yen."

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True
False
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Question 18
True/False

Your authors suggest that one way to characterize the global financial marketplace is through its assets, institutions, and linkages.

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True
False
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Question 19
True/False

Eurocurrencies are domestic currencies of one country on deposit in a second country.

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True
False
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Question 20
True/False

A eurodollar deposit is a demand deposit.

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True
False
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