Question 1

A Eurocurrency refers to a currency on deposit outside its country of issue.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a major purpose of the international capital market?

Accepted Answer

A)  to reduce entrepreneurial initiatives 
B)  to increase the cost of borrowing 
C)  to reduce risk for lenders 
D)  to reduce the money supply for borrowers 
A)  to reduce entrepreneurial initiatives 
B)  to increase the cost of borrowing 
C)  to reduce risk for lenders 
D)  to reduce the money supply for borrowers

Question 3

Bonds sold outside the borrower's country and denominated in the currency of the country in which they are sold are called ________.

Accepted Answer

A)  municipal bonds 
B)  foreign bonds 
C)  Eurobonds 
D)  domestic bonds 
A)  municipal bonds 
B)  foreign bonds 
C)  Eurobonds 
D)  domestic bonds

Question 4

Governments impose currency restrictions in their countries to ________.

Accepted Answer

A)  encourage future investment outflows 
B)  indirectly reduce imports and exports 
C)  protect currencies from speculators 
D)  exhaust their reserve of hard currencies 
A)  encourage future investment outflows 
B)  indirectly reduce imports and exports 
C)  protect currencies from speculators 
D)  exhaust their reserve of hard currencies

Question 5

Differentiate between currency speculation and currency arbitrage.

Accepted Answer

Currency speculation is the purchase or

Question 6

Company debt normally takes the form of ________,and it is an asset that can be traded anywhere at any time.

Accepted Answer

A)  global bonds 
B)  equity 
C)  stocks 
D)  bank loans 
A)  global bonds 
B)  equity 
C)  stocks 
D)  bank loans

Question 7

A(n)________ is a system that allocates financial resources in the form of debt and equity according to their most efficient uses.

Accepted Answer

A)  international equity market 
B)  forward market 
C)  capital market 
D)  eurocurrency market 
A)  international equity market 
B)  forward market 
C)  capital market 
D)  eurocurrency market

Question 8

Describe the purposes of the international capital market.What factors account for its rapid growth?

Accepted Answer

The international capital market is a ne

Question 9

Scenario: Sally Goes to Japan
Sally Johnson has identified a market for her company's products in Japan. She is excited about expanding her company, but knows that she needs to learn how the foreign exchange market works before she can successfully sell her products abroad.
-If Sally sees a quote of ¥117.87/$,she should know that ________.

Accepted Answer

A)  the yen is the base currency here 
B)  this is a direct quote on the dollar 
C)  this is a direct quote on the yen 
D)  the quote is in U.S. dollars 
A)  the yen is the base currency here 
B)  this is a direct quote on the dollar 
C)  this is a direct quote on the yen 
D)  the quote is in U.S. dollars

Question 10

Explain the role of equity in a national capital market.What factors are responsible for the growth of the international equity market?

Accepted Answer

Equity is part ownership of a company in

Question 11

In a quoted exchange rate of $1.69/British pound,the British pound is called the ________.

Accepted Answer

A)  base currency 
B)  counter currency 
C)  cross currency 
D)  quoted currency 
A)  base currency 
B)  counter currency 
C)  cross currency 
D)  quoted currency

Question 12

The world's three most important financial centers are ________.

Accepted Answer

A)  Zurich, Paris, and Washington 
B)  China, Brazil, and Mexico 
C)  Tokyo, London, and New York 
D)  Dubai, Beijing, and Germany 
A)  Zurich, Paris, and Washington 
B)  China, Brazil, and Mexico 
C)  Tokyo, London, and New York 
D)  Dubai, Beijing, and Germany

Question 13

With the help of microfinance,low-income entrepreneurs can borrow money at competitive rates without having to put anything up as collateral.

Accepted Answer

A) True 
 B)False

Question 14

A bond issue floated by a U.S.company in dollars in London,Luxembourg,and Switzerland by a syndication of bonds is an example of a ________.

Accepted Answer

A)  global bond 
B)  domestic bond 
C)  Eurobond 
D)  foreign bond 
A)  global bond 
B)  domestic bond 
C)  Eurobond 
D)  foreign bond

Question 15

Eurobonds are popular because ________.

Accepted Answer

A)  they are less risky than traditional bonds 
B)  they are always denominated in euros 
C)  governments of nations in which they are sold do not regulate them 
D)  European companies are considered very stable 
A)  they are less risky than traditional bonds 
B)  they are always denominated in euros 
C)  governments of nations in which they are sold do not regulate them 
D)  European companies are considered very stable

Question 16

In any exchange rate,the quoted currency is always the numerator.

Accepted Answer

A) True 
 B)False

Question 17

What is the foreign exchange market? Explain why investors use this market.

Accepted Answer

Unlike domestic transactions,internation

Question 18

Which of the following is an exchange rate that requires delivery of the traded currency within two business days?

Accepted Answer

A)  forward rate 
B)  spot rate 
C)  cross rate 
D)  prime rate 
A)  forward rate 
B)  spot rate 
C)  cross rate 
D)  prime rate

Question 19

Explain the concept of cross rates.Include the description of a vehicle currency and the role it plays in the foreign exchange market.

Accepted Answer

International transactions between two c

Question 20

Which of the following factors is responsible for growth in the international equity market?

Accepted Answer

A)  advent of cybermarkets 
B)  spread of countertrade 
C)  centrally planned economies 
D)  government partnerships 
A)  advent of cybermarkets 
B)  spread of countertrade 
C)  centrally planned economies 
D)  government partnerships

A Eurocurrency refers to a currency on deposit outside its country of issue.

Which of the following is a major purpose of the international capital market?

Bonds sold outside the borrower's country and denominated in the currency of the country in which they are sold are called ________.

Governments impose currency restrictions in their countries to ________.

Differentiate between currency speculation and currency arbitrage.

Company debt normally takes the form of ________,and it is an asset that can be traded anywhere at any time.

A(n)________ is a system that allocates financial resources in the form of debt and equity according to their most efficient uses.

Describe the purposes of the international capital market.What factors account for its rapid growth?

Explain the role of equity in a national capital market.What factors are responsible for the growth of the international equity market?

In a quoted exchange rate of $1.69/British pound,the British pound is called the ________.

The world's three most important financial centers are ________.

With the help of microfinance,low-income entrepreneurs can borrow money at competitive rates without having to put anything up as collateral.

A bond issue floated by a U.S.company in dollars in London,Luxembourg,and Switzerland by a syndication of bonds is an example of a ________.

Eurobonds are popular because ________.

In any exchange rate,the quoted currency is always the numerator.

What is the foreign exchange market? Explain why investors use this market.

Which of the following is an exchange rate that requires delivery of the traded currency within two business days?

Explain the concept of cross rates.Include the description of a vehicle currency and the role it plays in the foreign exchange market.

Which of the following factors is responsible for growth in the international equity market?

Globalization

Cross-Cultural Business

Political Economy and Ethics

Economic Development of Nations

International Trade Theory

Political Economy of Trade

Foreign Direct Investment

Regional Economic Integration

International Monetary System

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters

Exam 9: International Financial Markets

A Eurocurrency refers to a currency on deposit outside its country of issue.

Which of the following is a major purpose of the international capital market?

Bonds sold outside the borrower's country and denominated in the currency of the country in which they are sold are called ________.

Governments impose currency restrictions in their countries to ________.

Differentiate between currency speculation and currency arbitrage.

Company debt normally takes the form of ________,and it is an asset that can be traded anywhere at any time.

A(n)________ is a system that allocates financial resources in the form of debt and equity according to their most efficient uses.

Describe the purposes of the international capital market.What factors account for its rapid growth?

Explain the role of equity in a national capital market.What factors are responsible for the growth of the international equity market?

In a quoted exchange rate of $1.69/British pound,the British pound is called the ________.

The world's three most important financial centers are ________.

With the help of microfinance,low-income entrepreneurs can borrow money at competitive rates without having to put anything up as collateral.

A bond issue floated by a U.S.company in dollars in London,Luxembourg,and Switzerland by a syndication of bonds is an example of a ________.

Eurobonds are popular because ________.

In any exchange rate,the quoted currency is always the numerator.

What is the foreign exchange market? Explain why investors use this market.

Which of the following is an exchange rate that requires delivery of the traded currency within two business days?

Explain the concept of cross rates.Include the description of a vehicle currency and the role it plays in the foreign exchange market.

Which of the following factors is responsible for growth in the international equity market?

Globalization

Cross-Cultural Business

Political Economy and Ethics

Economic Development of Nations

International Trade Theory

Political Economy of Trade

Foreign Direct Investment

Regional Economic Integration

International Monetary System

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters