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International Finance Quiz 14 (20 MCQs)

Quiz Instructions

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1. Exchange of goods and services among the nations of theworld
2. Due to ....., market forces should realign the relationship between the interest rate differential of two currencies and the forward premium (or discount) on the forward exchange rate between the two currencies
3. According to the international Fisher effect, if U.S. investors expect a 5 percent rate of domestic inflation over one year and a 2 percent rate of inflation in European countries that use the euro, and if they require a 3 percent real return on investments over one year, the nominal interest rate on one-year U.S. Treasury securities would be:
4. What is the limitation of a weak home currency solution on international trade?
5. Bank A quotes GBP/USD as 1.55/1.57. Bank B lists the exchange rate of British pound and USD as 1.53/1.55. If an investor has $ 100, 000, how much profit can be obtained by buying GBP from bank B and selling it to bank A?
6. This is raised for the international businesses by the stock market and derivative market.
7. Which of these is not a reason of going global?
8. People who favor trade barriers to protect domestic industries from imported products
9. Which of the following is not need of International Finance
10. Exchange Rate If one dollar is equivalent to 0.82 euros, how many euros is 120 dollars?
11. The most risky method(s) by which firms conduct international business is (are):
12. Net International Investment Position (NIIP)
13. Jdfxdzhfxdfxd
14. A country's ability to produce a given product with greater output per unit of input than another country
15. A high home inflation rate relative to other countries would ..... the home country's current account balance, other things being equal. High growth in the home income level relative to other countries would ..... the home country's current account balance, other things being equal
16. Assuming the current interest rate of USD is 2.5%/year, the current interest rate of CHF is 5.3%/year. The premium or discount of a forward contract with a US investor after 1 year will be (assuming an IRP exists):
17. What is the main purpose of the Inter-American Development Bank?
18. Currency futures contracts traded on exchanges:
19. The goal of a multinational corporation (MNC) is
20. The primary market is:
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