Multinational Business Finance 15th Global Edition by David K. Eiteman test bank

Multinational Business Finance, 15e, Global Edition (Eiteman/Stonehill/Moffett)
Chapter 1   Multinational Financial Management: Opportunities and Challenges
 
1.1  The Global Financial Marketplace
 
1) Financial globalization has NOT resulted in:
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.
Answer:  D
Diff: 1
L.O.:  1.1 The Global Financial Marketplace
Skill:  Recognition
AACSB:  Application of knowledge
 
2) Financial globalization has NOT resulted in:
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.
Answer:  C
Diff: 1
L.O.:  1.1 The Global Financial Marketplace
Skill:  Recognition
AACSB:  Application of knowledge
 
3) The institutions of global finance are:
A) central banks.
B) commercial banks.
C) investment banks.
D) All of the above are institutions of global finance.
Answer:  D
Diff: 1
L.O.:  1.1 The Global Financial Marketplace
Skill:  Recognition
AACSB:  Application of knowledge
 
 
 
 
 
 
                                                                             
 

4) A well-established, large U.S.-based MNE will probably NOT be able to overcome which of the following obstacles to maximizing firm value?
A) an open marketplace
B) high-quality strategic management
C) access to capital
D) none of the above
Answer:  D
Diff: 1
L.O.:  1.1 The Global Financial Marketplace
Skill:  Conceptual
AACSB:  Application of knowledge
 
5) A well-established, large, China-based MNE will probably be most adversely affected by which of the following elements of firm value?
A) an open marketplace
B) high-quality strategic management
C) access to capital
D) access to qualified labor pool
Answer:  A
Diff: 2
L.O.:  1.1 The Global Financial Marketplace
Skill:  Conceptual
AACSB:  Application of knowledge
 
6) A well-established, large, Brazil-based MNE will probably be most adversely affected by which of the following elements of firm value?
A) an open marketplace
B) high-quality strategic management
C) access to capital
D) access to qualified labor pool
Answer:  C
Diff: 2
L.O.:  1.1 The Global Financial Marketplace
Skill:  Conceptual
AACSB:  Application of knowledge
 
7) A major cost avoided in the eurocurrency markets is the payment of deposit insurance fees, such as:
A) Federal Deposit Insurance Corporation — FDIC.
B) Office of the Comptroller of the Currency — OCC.
C) International Monetary Fund — IMF.
D) World Bank — WB.
Answer:  A
Diff: 2
L.O.:  1.1 The Global Financial Marketplace
Skill:  Recognition
AACSB:  Application of knowledge
 
8) The modern eurocurrency market was born shortly after:
A) World War II.
B) World War I.
C) Korean War.
D) Bosnian War.
Answer:  A
Diff: 1
L.O.:  1.1 The Global Financial Marketplace
Skill:  Recognition
AACSB:  Application of knowledge
 
9) The reference rate of interest in the eurocurrency market is the:
A) London Interbank Offered Rate.
B) Prima rate.
C) Federal funds rate.
D) Treasury rate.
Answer:  A
Diff: 1
L.O.:  1.1 The Global Financial Marketplace
Skill:  Recognition
AACSB:  Application of knowledge
 
10) Interest spreads in the eurocurrency market are small for many reasons EXCEPT:
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.