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Fin 4604 Questions And Correct Answers
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---16februari 20252024/2025A+
- Fin 4604 Questions And Correct Answers 
which would have the least direct influence on a countrys current account Tax on income 
earned on foreign stocks. 
income received by investors on previous investments in foreign financial assets (securities). 
 factor income 
also known as central banks, it attempts to facilitate cooperation among countries with financial 
crisis Bank for International Settlements (BIS)
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FIN 4604 Final Questions And Correct Answers
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---24februari 20252024/2025A+
- FIN 4604 Final Questions And Correct 
Answers 
Grecian Tile Manufacturing of Athens, Georgia, borrows $1,500,000 at LIBOR plus a lending 
margin of 1.26 percent per annum on a six-month rollover basis from a London bank. If sixmonth LIBOR is 4.55 percent over the first six-month interval and 5.380 percent over the second 
six-month interval, how much will Grecian Tile pay in interest over the first year of its 
Eurodollar loan? $93,375.00 
$*(libor+margin)/2+$(2nd libor+margin)/2
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FIN4604 Questions And Correct Answers
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---26februari 20252024/2025A+
- FIN4604 Questions And Correct Answers 
The development and expansion of the Euro-currency market were fostered by inwardlooking regulations in national financial markets, US-Soviet cold war era strategies, OPEC's 
petrodollar recycling activities, and persistent US BOP deficits resulting in more foreign 
holdings of US dollars 
The concept of narrow spread in the Eurocurrency market means lower transaction costs 
permit higher yields to depositors and lower costs to borrowers 
The followi...
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FIN 4604 Questions And Correct Answers
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---72februari 20252024/2025A+
- FIN 4604 Questions And Correct Answers 
The exporter-importer relationship to a corporation of a foreign importer that has not previously 
conducted business with the firm would be an: 
A) unaffiliated known 
B) affiliated party 
C) unaffiliated unknown 
D) any of the above C) unaffiliated unknown
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Fin4604 Section 5 Questions And Correct Answers
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---8februari 20252024/2025A+
- Fin4604 Section 5 Questions And Correct 
Answers 
A dealer based in NYC provides a spot exchange rate quote of 0.7700 CAD/USD to a client in 
Quebec, Canada. The inverse of 0.7700 is 1.2987. From the perspective of the Canadian client, 
the most accurate statement is that the: direct exchange rate is equal to 1.2987 
If the bid/ask quote from a dealer was 0.7702/04 CAD/USD, then the bid/ask quote in 
USD/CAD would be closest to: 1.2980/84
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Fin 4604 Exam 2 Questions And Correct Answers
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---37februari 20252024/2025A+
- Fin 4604 Exam 2 Questions And Correct 
Answers 
Call and put options premiums are affected by the level of existing spot price relative to the 
strike price. A ____ spot price relative to the strike price results in relatively ____ premium for a 
call option but a relatively ____ premium for a put option. a. High; High; Low 
A U.S. corporation has purchased currency put options to hedge a 100,000 Canadian dollar (C$) 
receivable. The premium is $.01 and the exercise price of the option is $....
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FIN 4604 Final Exam Questions And Correct Answers
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---36februari 20252024/2025A+
- FIN 4604 Final Exam Questions And Correct 
Answers 
The main goal of an MNC is to: maximize shareholder wealth 
Agency costs are normally larger for MNC's. Large MNC agency costs can be increased by / 
include: a high number of distant subsidiaries 
The notion that specialization by countries can increase production efficiency is supported by 
which theory of international business? ??? Imperfect Markets Theory 
??? Theory of Competitive Advantage
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FIN 4604 Final Exam Questions And Correct Answers
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---19februari 20252024/2025A+
- FIN 4604 Final Exam Questions And Correct 
Answers 
The degree of political risk faced by a firm operating in a foreign country depends on how 
the firm has structured its operations 
One good indicator of political risk is the seriousness of capital flight 
Capital flight occurs for several reasons, most of which have to do with high taxes on 
local investments 
Expropriation or creeping expropriation is most likely in the sector of an economy. 
 extractive
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FIN 4604 Final Questions And Correct Answers
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---71februari 20252024/2025A+
- FIN 4604 Final Questions And Correct 
Answers 
Grecian Tile Manufacturing of Athens, Georgia, borrows $1,500,000 at LIBOR plus a lending 
margin of 1.26 percent per annum on a six-month rollover basis from a London bank. If sixmonth LIBOR is 4.55 percent over the first six-month interval and 5.380 percent over the second 
six-month interval, how much will Grecian Tile pay in interest over the first year of its 
Eurodollar loan? (Do not round intermediate calculations. Round your answer to 2...
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