Test Bank for Multinational Business Finance 16th
Edition By (Eiteman/Stonehill/Moffett)
Wickyaplus stuvia
,TABLE OF CONTENTS x x
PART I: GLOBAL FINANCIAL ENVIRONMENT
x x x x
1. Multinational Financial Management: Challenges and Opportunities
x x x x x
2. International Monetary System x x
3. The Balance of Payments
x x x
4. Financial Goals, Corporate Governance and the Market for Corporate Control
x x x x x x x x x
x PART II: FOREIGN EXCHANGE THEORY & MARKETS
x x x x x x
5. The Foreign Exchange Market
x x x
6. International Parity Conditions x x
• Appendix: An Algebraic Primer to International Parity Conditions
x x x x x x x
7. Foreign Currency Derivatives: Futures & Options
x x x x x
• Appendix: Currency Option Pricing Theory x x x x
8. Interest Rate Risk and Swaps x x x x
9. Foreign Exchange Rate Determination & Intervention
x x x x x
PART III: FOREIGN EXCHANGE EXPOSURE
x x x x x
10. Transaction Exposure x
• Appendix A: Complex Option Hedges x x x x
• Appendix B: The Optimal Hedge Ratio and Hedge Effectiveness
x x x x x x x x
x 11.Translation Exposure x
12. Operating Exposure x
PART IV: FINANCING THE GLOBAL FIRM
x x x x x
13. Global Cost and Availability of Capital
x x x x x
14. Funding the Multinational Firm x x x
15.Multinational
x x Tax
Management
x x 16.International
x Trade Finance
x
PART V: FOREIGN INVESTMENTS AND INVESTMENT ANALYSIS
x x x x x x
17. Foreign Direct Investment & Political Risk
x x x x x
18. Multinational Capital Budgeting & Cross-Border Acquisitions x x x x x
,Multinational Business Finance, 16e (Eiteman/Stonehill/Moffett) x x x x
Chapter 1 Multinational Financial Management: Opportunities
x x x x x x
and Challenges
x x
18.1 The Global Financial Marketplace
x x x
1) Financial globalization has NOT resulted in: x x x x x
A) continuing imbalances of balance of payments. x x x x x
B) an increase in quantity and speed in the flow of capital across the world.
x x x x x x x x x x x x x
C) capital markets less open and a decrease in the availability of capital for many
x x x x x x x x x x x x x
organizations.
x
D) uniform ways of ownership, control, and governance across the
x x x x x x x x
world. Answer: D
x x x
Diff: 1 x
L.O.: 1.1 The Global Financial Marketplace
x x x x x
Skill: Recognition
x x
AACSB: Application of knowledge x x x
2) Financial globalization has NOT resulted in: x x x x x
A) continuing imbalances of balance of payments. x x x x x
B) an increase in quantity and speed in the flow of capital across the world.
x x x x x x x x x x x x x
C) capital markets more open and an increase in the availability of capital for
x x x x x x x x x x x x
many organizations.
x x
D) an increase in the flow of capital into and out of industrialized
x x x x x x x x x x x
markets. Answer: C
x x x
Diff: 1 x
L.O.: 1.1 The Global Financial Marketplace
x x x x x
Skill: Recognition
x x
AACSB: Application of knowledge x x x
3) The institutions of global finance are:
x x x x x
A) central banks. x
B) commercial banks. x
C) investment banks. x
D) All of the above are institutions of global
x x x x x x x
finance. Answer: D
x x x
Diff: 1 x
L.O.: 1.1 The Global Financial Marketplace
x x x x x
Skill: Recognition
x x
AACSB: Application of knowledge x x x
, 4) A major cost avoided in the eurocurrency markets is the payment of deposit
x x x x x x x x x x x x
insurance fees, such as:
x x x x
A) Federal Deposit Insurance Corporation — FDIC.
x x x x x
B) Office of the Comptroller of the Currency — OCC.
x x x x x x x x
C) International Monetary Fund — IMF. x x x x
D) World Bank — WB. x x x
Answer: A x
Diff: 2 x
L.O.: 1.1 The Global Financial Marketplace
x x x x x
Skill: Recognition
x x
AACSB: Application of knowledge
x x x
5) The modern eurocurrency market was born shortly after:
x x x x x x x
A) World War II. x x
B) World War I. x x
C) Korean War. x
D) Bosnian
War.
x
Answer:
x
A Diff: 1
x x
L.O.: 1.1 The Global Financial Marketplace
x x x x x
Skill: Recognition
x x
AACSB: Application of knowledge
x x x
6) The reference rate of interest in the eurocurrency market is the:
x x x x x x x x x x
A) London Interbank Offered Rate. x x x
B) Prima rate. x
C) Federal funds rate. x x
D) Treasury
rate.
x
Answer:
x
A Diff: 1
x x
L.O.: 1.1 The Global Financial Marketplace
x x x x x
Skill: Recognition
x x
AACSB: Application of knowledge
x x x
7) Interest spreads in the eurocurrency market are small for many reasons EXCEPT:
x x x x x x x x x x x
A) Eurocurrency loans are secured loans. x x x x
B) Eurocurrency deposits and loans are made in amounts of $500,000 or more on an
x x x x x x x x x x x x x
unsecured basis.
x x
C) The eurocurrency is a wholesale market.
x x x x x
D) Borrowers are usually large corporations or government
x x x x x x
entities. Answer: A
x x x
Diff: 2 x
L.O.: 1.1 The Global Financial Marketplace
x x x x x
Skill: Recognition
x x
AACSB: Application of knowledge
x x x
Edition By (Eiteman/Stonehill/Moffett)
Wickyaplus stuvia
,TABLE OF CONTENTS x x
PART I: GLOBAL FINANCIAL ENVIRONMENT
x x x x
1. Multinational Financial Management: Challenges and Opportunities
x x x x x
2. International Monetary System x x
3. The Balance of Payments
x x x
4. Financial Goals, Corporate Governance and the Market for Corporate Control
x x x x x x x x x
x PART II: FOREIGN EXCHANGE THEORY & MARKETS
x x x x x x
5. The Foreign Exchange Market
x x x
6. International Parity Conditions x x
• Appendix: An Algebraic Primer to International Parity Conditions
x x x x x x x
7. Foreign Currency Derivatives: Futures & Options
x x x x x
• Appendix: Currency Option Pricing Theory x x x x
8. Interest Rate Risk and Swaps x x x x
9. Foreign Exchange Rate Determination & Intervention
x x x x x
PART III: FOREIGN EXCHANGE EXPOSURE
x x x x x
10. Transaction Exposure x
• Appendix A: Complex Option Hedges x x x x
• Appendix B: The Optimal Hedge Ratio and Hedge Effectiveness
x x x x x x x x
x 11.Translation Exposure x
12. Operating Exposure x
PART IV: FINANCING THE GLOBAL FIRM
x x x x x
13. Global Cost and Availability of Capital
x x x x x
14. Funding the Multinational Firm x x x
15.Multinational
x x Tax
Management
x x 16.International
x Trade Finance
x
PART V: FOREIGN INVESTMENTS AND INVESTMENT ANALYSIS
x x x x x x
17. Foreign Direct Investment & Political Risk
x x x x x
18. Multinational Capital Budgeting & Cross-Border Acquisitions x x x x x
,Multinational Business Finance, 16e (Eiteman/Stonehill/Moffett) x x x x
Chapter 1 Multinational Financial Management: Opportunities
x x x x x x
and Challenges
x x
18.1 The Global Financial Marketplace
x x x
1) Financial globalization has NOT resulted in: x x x x x
A) continuing imbalances of balance of payments. x x x x x
B) an increase in quantity and speed in the flow of capital across the world.
x x x x x x x x x x x x x
C) capital markets less open and a decrease in the availability of capital for many
x x x x x x x x x x x x x
organizations.
x
D) uniform ways of ownership, control, and governance across the
x x x x x x x x
world. Answer: D
x x x
Diff: 1 x
L.O.: 1.1 The Global Financial Marketplace
x x x x x
Skill: Recognition
x x
AACSB: Application of knowledge x x x
2) Financial globalization has NOT resulted in: x x x x x
A) continuing imbalances of balance of payments. x x x x x
B) an increase in quantity and speed in the flow of capital across the world.
x x x x x x x x x x x x x
C) capital markets more open and an increase in the availability of capital for
x x x x x x x x x x x x
many organizations.
x x
D) an increase in the flow of capital into and out of industrialized
x x x x x x x x x x x
markets. Answer: C
x x x
Diff: 1 x
L.O.: 1.1 The Global Financial Marketplace
x x x x x
Skill: Recognition
x x
AACSB: Application of knowledge x x x
3) The institutions of global finance are:
x x x x x
A) central banks. x
B) commercial banks. x
C) investment banks. x
D) All of the above are institutions of global
x x x x x x x
finance. Answer: D
x x x
Diff: 1 x
L.O.: 1.1 The Global Financial Marketplace
x x x x x
Skill: Recognition
x x
AACSB: Application of knowledge x x x
, 4) A major cost avoided in the eurocurrency markets is the payment of deposit
x x x x x x x x x x x x
insurance fees, such as:
x x x x
A) Federal Deposit Insurance Corporation — FDIC.
x x x x x
B) Office of the Comptroller of the Currency — OCC.
x x x x x x x x
C) International Monetary Fund — IMF. x x x x
D) World Bank — WB. x x x
Answer: A x
Diff: 2 x
L.O.: 1.1 The Global Financial Marketplace
x x x x x
Skill: Recognition
x x
AACSB: Application of knowledge
x x x
5) The modern eurocurrency market was born shortly after:
x x x x x x x
A) World War II. x x
B) World War I. x x
C) Korean War. x
D) Bosnian
War.
x
Answer:
x
A Diff: 1
x x
L.O.: 1.1 The Global Financial Marketplace
x x x x x
Skill: Recognition
x x
AACSB: Application of knowledge
x x x
6) The reference rate of interest in the eurocurrency market is the:
x x x x x x x x x x
A) London Interbank Offered Rate. x x x
B) Prima rate. x
C) Federal funds rate. x x
D) Treasury
rate.
x
Answer:
x
A Diff: 1
x x
L.O.: 1.1 The Global Financial Marketplace
x x x x x
Skill: Recognition
x x
AACSB: Application of knowledge
x x x
7) Interest spreads in the eurocurrency market are small for many reasons EXCEPT:
x x x x x x x x x x x
A) Eurocurrency loans are secured loans. x x x x
B) Eurocurrency deposits and loans are made in amounts of $500,000 or more on an
x x x x x x x x x x x x x
unsecured basis.
x x
C) The eurocurrency is a wholesale market.
x x x x x
D) Borrowers are usually large corporations or government
x x x x x x
entities. Answer: A
x x x
Diff: 2 x
L.O.: 1.1 The Global Financial Marketplace
x x x x x
Skill: Recognition
x x
AACSB: Application of knowledge
x x x
