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International Finance Quiz 12 (30 MCQs)

Quiz Instructions

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1. What is the value of one country's currency expressed in the terms of another country's currency?
2. What is the purpose of the World Bank's Structural Adjustment Loans (SALs)?
3. Larobi is a US-based MNC that regularly imports raw materials from China. Larobi pays for these import orders in Chinese Yuan (CNY) and is concerned that the CNY will appreciate in the near future. Which of the following is not an appropriate hedging technique in these circumstances?
4. A long contract requires that the investor
5. Saller Co. has a subsidiary in Mexico. The expected cash flows in pesos to be received in the future from this subsidiary have not changed since last month, but the valuation of Saller Co. has declined since last month. What could've caused this decline in value?
6. Portfolio capital flows to emerging economies tend to be larger than flows of foreign direct investment.
7. Entrepreneurial working capital management involves asking for better terms than those offered by any vendor, creditor, lender or customer in order to maximize your business' profitability and cash flow.
8. The amount paid for an option is the
9. Like international trade and business ..... exists due to the fact that economic activities of businesses, governments, and organizations get affected by the existence of nations.
10. Exchange Rate If one euro is equivalent to 1.22 dollars, how many dollars is 120 euros?
11. If portable disk players made in China are imported into the United States, the Chinese manufacturer is paid with
12. A call option gives the owner
13. ..... is a way to analyze the economic status of the countries you may wish to do business with, judge the foreign markets, compare inflation rates and pay bills in a foreign currency.
14. What is headroom in American Depository Receipts issuance
15. Assume spot rate 122 JPY/USD, forward rate 1 year 130JPY/USD, 1-year USD interest rate 5%, assuming CIP exists JPY interest rate. According to the formula, the exact form is?
16. The dark matter hypothesis is asking to revisit the question what is actually the true net asset position of a country.
17. The agency costs of an MNC are likely to be lower if it:
18. At ACB bank, the buying rate is listed as follows:1 USD = 7, 7852 HKD and 1 HKD = 2003, 8 VND. So for the bank, the buying rate of 1 USD is:
19. Futures differ from forwards because they are
20. If a country's government imposes a tariff on imported goods, that country's current account balance will likely ..... (assuming no retaliation by other governments)
21. Which of the following is an example of direct foreign investment?
22. What does the International Finance Corporation (IFC) promote?
23. Licensing obligates a firm to provide ....., while franchising obligates a firm to provide .....
24. The two primary goals of inventory management are to:(1pts)
25. For the MNC, agency costs are typically:
26. Infosys has raised American depository receipts for the purpose of
27. Which of the following forms of arbitrage needs to consider cross-rates?
28. U9V-7) Which term is defined as a tax on imported goods?
29. Suppose that Britain pegs the pound to gold at six pounds per ounce, whereas the exchange rate between pounds and U.S. dollars is $ 5 = £1. What should an ounce of gold be worth in U.S. dollars?
30. What does the Bank for International Settlements (BIS) facilitate?
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