Question 1

Political risk and labor unrest will tend to strengthen a country's currency.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following kinds of risk is NOT uniquely associated with multinational corporations (MNCs) ?

Accepted Answer

A)   Exchange rate risk
B)   Business risk
C)   Political risk
D)   None of these options are uniquely associated with MNCs.E) B) and D)
F) All of the above

Question 3

All of the countries that joined the "Eurozone" were able to enjoy economic benefits for various reasons.

Accepted Answer

A) True 
 B)False

Question 4

The lending rate for borrowers in the Eurodollar market is based on the prime lending rate.

Accepted Answer

A) True 
 B)False

Question 5

A portfolio of international stocks in comparison to purely U.S. stocks generally shows

Accepted Answer

A)   a lower percentage risk for a given number of stocks.
B)   higher percentage risk for a given number of stocks.
C)   the same percentage risk for a given number of stocks.
D)   a lower percentage return for a given number of stocks.E) B) and C)
F) A) and B)

Question 6

Which of the following is not commonly used to minimize transaction exposure in foreign exchange dealings?

Accepted Answer

A)   Hedging in the forward exchange market
B)   Hedging in the money market
C)   Hedging in the stock market
D)   Hedging in the currency futures marketE) B) and C)
F) A) and D)

Question 7

The North American Free Trade Association (NAFTA) continues to generate more foreign trade despite some negative political views.

Accepted Answer

A) True 
 B)False

Question 8

When Country A's currency strengthens against Country B's, citizens of Country A will

Accepted Answer

A)   pay less to buy Country B's products.
B)   pay more to buy Country B's products.
C)   pay more to buy domestically produced products.
D)   not be affected by the change in their currency's value.E) A) and C)
F) B) and C)

Question 9

Which of the following is not a reason for U.S. firms operating in foreign markets?

Accepted Answer

A)   Less expensive labor
B)   Better economic and political environment (in the U.S.) 
C)   Tax incentives
D)   To achieve international diversificationE) A) and D)
F) C) and D)

Exam 21: International Financial Management

All of the countries that joined the "Eurozone" were able to enjoy economic benefits for various reasons.

Correct Answer
verified

A portfolio of international stocks in comparison to purely U.S. stocks generally shows

Correct Answer
verified

Political risk and labor unrest will tend to strengthen a country's currency.

Correct Answer
verified

Which of the following is not commonly used to minimize transaction exposure in foreign exchange dealings?

Correct Answer
verified

Which of the following kinds of risk is NOT uniquely associated with multinational corporations (MNCs) ?

Correct Answer
verified

When Country A's currency strengthens against Country B's, citizens of Country A will

Correct Answer
verified

The lending rate for borrowers in the Eurodollar market is based on the prime lending rate.

Correct Answer
verified

The North American Free Trade Association (NAFTA) continues to generate more foreign trade despite some negative political views.

Correct Answer
verified

Which of the following is not a reason for U.S. firms operating in foreign markets?

Correct Answer
verified

Exam 21: International Financial Management

All of the countries that joined the "Eurozone" were able to enjoy economic benefits for various reasons.

Correct AnswerverifiedShow Answer

A portfolio of international stocks in comparison to purely U.S. stocks generally shows

Correct AnswerverifiedShow Answer

Political risk and labor unrest will tend to strengthen a country's currency.

Correct AnswerverifiedShow Answer

Which of the following is not commonly used to minimize transaction exposure in foreign exchange dealings?

Correct AnswerverifiedShow Answer

Which of the following kinds of risk is NOT uniquely associated with multinational corporations (MNCs) ?

Correct AnswerverifiedShow Answer

When Country A's currency strengthens against Country B's, citizens of Country A will

Correct AnswerverifiedShow Answer

The lending rate for borrowers in the Eurodollar market is based on the prime lending rate.

Correct AnswerverifiedShow Answer

The North American Free Trade Association (NAFTA) continues to generate more foreign trade despite some negative political views.

Correct AnswerverifiedShow Answer

Which of the following is not a reason for U.S. firms operating in foreign markets?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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