MBA 620 Midterm Exam Actual Exam
MBA 620 MIDTERM EXAM ACTUAL EXAM NEWEST 2025/2026
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |BRAND NEW VERSION!!
Which of the following is an example of direct foreign investment? - Correct
Answer-purchasing existing companies in a country.
Assume that Live Co. has expected cash flows of $200,000 from domestic
operations, SF200,000 from Swiss operations, and 150,000 euros from Italian
operations at the end of the year. The Swiss franc's value and euro's value are
expected to be $.83 and $1.29 respectively, at the end this year. What are the
expected dollar cash flows of Live Co? - Correct Answer-559,500
Without the international capital flows, there would be ____ funding available in
the U.S. across all risk levels, and the cost of funding would be ____ regardless of
the firm's risk level. - Correct Answer-less; higher
The North American Free Trade Agreement (NAFTA) increased restrictions on: -
Correct Answer-none of the above
Which of the following factors probably does not directly affect a country's capital
account and its components? - Correct Answer-Inflation
An increase in the current account deficit will place ____ pressure on the home
currency value, other things equal. - Correct Answer-downward
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, MBA 620 Midterm Exam Actual Exam
The World Bank was established to: - Correct Answer-enhance economic
development through non-subsidized loans (at market interest rates).
An increase in the current account deficit will place ____ pressure on the home
currency value, other things equal. - Correct Answer-downward
The demand for U.S. exports tends to increase when: - Correct Answer-the
currencies of foreign countries strengthen against the dollar
____ represent aid, grants, and gifts from one country to another. - Correct
Answer-Transfer payments
If the home currency begins to appreciate against other currencies, this should
____ the current account balance, other things equal (assume that substitutes are
readily available in the countries, and that the prices charged by firms remain the
same). - Correct Answer-reduce
The International Financial Corporation was established to: - Correct Answer-
enhance economic development of the private sector through investment in stock
of corporations.
The ____ is the difference between exports and imports. - Correct Answer-balance
of trade
Which of the following countries purchases the largest amount of exports by U.S.
firms? - Correct Answer-Canada
2|Page
MBA 620 MIDTERM EXAM ACTUAL EXAM NEWEST 2025/2026
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |BRAND NEW VERSION!!
Which of the following is an example of direct foreign investment? - Correct
Answer-purchasing existing companies in a country.
Assume that Live Co. has expected cash flows of $200,000 from domestic
operations, SF200,000 from Swiss operations, and 150,000 euros from Italian
operations at the end of the year. The Swiss franc's value and euro's value are
expected to be $.83 and $1.29 respectively, at the end this year. What are the
expected dollar cash flows of Live Co? - Correct Answer-559,500
Without the international capital flows, there would be ____ funding available in
the U.S. across all risk levels, and the cost of funding would be ____ regardless of
the firm's risk level. - Correct Answer-less; higher
The North American Free Trade Agreement (NAFTA) increased restrictions on: -
Correct Answer-none of the above
Which of the following factors probably does not directly affect a country's capital
account and its components? - Correct Answer-Inflation
An increase in the current account deficit will place ____ pressure on the home
currency value, other things equal. - Correct Answer-downward
1|Page
, MBA 620 Midterm Exam Actual Exam
The World Bank was established to: - Correct Answer-enhance economic
development through non-subsidized loans (at market interest rates).
An increase in the current account deficit will place ____ pressure on the home
currency value, other things equal. - Correct Answer-downward
The demand for U.S. exports tends to increase when: - Correct Answer-the
currencies of foreign countries strengthen against the dollar
____ represent aid, grants, and gifts from one country to another. - Correct
Answer-Transfer payments
If the home currency begins to appreciate against other currencies, this should
____ the current account balance, other things equal (assume that substitutes are
readily available in the countries, and that the prices charged by firms remain the
same). - Correct Answer-reduce
The International Financial Corporation was established to: - Correct Answer-
enhance economic development of the private sector through investment in stock
of corporations.
The ____ is the difference between exports and imports. - Correct Answer-balance
of trade
Which of the following countries purchases the largest amount of exports by U.S.
firms? - Correct Answer-Canada
2|Page
