managers may be tempted to enrich themselves at shareholder expense.
the board of directors is not doing its job.
all of the options
References
Multiple Choice Difficulty: 1 Easy
Privatization refers to the process of
having government operate businesses for the betterment of the public sector.
government allowing the operation of privately owned business only.
prohibiting government operated enterprises.
a country divesting itself of the ownership and operation of a business venture by turning it over to the free
market system.
References
Multiple Choice Difficulty: 1 Easy
Deregulation of world financial markets
provided a natural environment for financial innovations, like currency futures and options.
has promoted competition among market participants.
has encouraged developing countries such as Chile, Mexico, and Korea to liberalize by allowing foreigners to
directly invest in their financial markets.
all of the options
References
Multiple Choice Difficulty: 1 Easy
32.
Award: 1.00 point
33.
Award: 1.00 point
34.
Award: 1.00 point
The emergence of global financial markets is due in no small part to
advances in computer and telecommunications technology.
enforcement of the Soviet system of state ownership of resources of production.
government regulation and protection of infant industries.
none of the options
References
Multiple Choice Difficulty: 1 Easy
The common monetary policy for the euro zone is now formulated by
the Bundesbank in Germany.
the Federal Reserve Bank.
the World Bank.
the European Central Bank.
References
Multiple Choice Difficulty: 1 Easy
Since the end of World War I, the dominant global currency has been the
British pound.
Japanese yen.
Euro.
U.S. dollar.
References
Multiple Choice Difficulty: 1 Easy
35.
Award: 1.00 point
36.
Award: 1.00 point
37.
Award: 1.00 point
Prior to World War I ending, the dominant global currency was the
German mark.
French franc.
Japanese yen.
British pound.
References
Multiple Choice Difficulty: 1 Easy
The ascendance of the dollar reflects several key factors, such as
the size of the U.S. population.
the mature and open capital markets of the U.S. economy.
exchange rate stability.
all of the options
References
Multiple Choice Difficulty: 1 Easy
The euro
is the common currency of Europe.
is divisible into 100 cents, just like the U.S. dollar.
may eventually have a transaction domain larger than the U.S. dollar.
all of the options
References
Multiple Choice Difficulty: 1 Easy
38.
Award: 1.00 point
39.
Award: 1.00 point
Since its inception the euro has brought about revolutionary changes in European finance. For example,
by redenominating corporate bonds and stocks from several different currencies into one common currency, the
euro has precipitated the emergence of continent-wide capital markets in Europe that are comparable to U.S.
markets in depth and liquidity.
Swiss bank accounts are all denominated in euro.
the European banking sector has become much more important as a source of financing for European firms.
there have actually not been any revolutionary changes.
References
Multiple Choice Difficulty: 1 Easy
In David Ricardo's theory of comparative advantage,
international trade is a zero-sum game in which one trading partner's gain comes at the expense of another's
loss.
liberalization of international trade will enhance the welfare of the world's citizens.
is a short-run argument, not a long-run argument.
has been superseded by the now-orthodox view of mercantilism.
References
Multiple Choice Difficulty: 1 Easy
40.
Award: 1.00 point
41.
Award: 1.00 point
42.
Award: 1.00 point
Under the theory of comparative advantage, liberalization of international trade will
enhance the welfare of the world's citizens.
create unemployment and displacement of workers permanently.
result in higher prices in the long run as monopolist are able to charge higher prices after eliminating their
competitors.
all of the options
References