Question 1

A measure of liquidity for a stock market is the turnover ratio; defined as

Accepted Answer

A) the ratio of stock market transactions over a period of time divided by the size,or market capitalization,of the stock market. 
B) the ratio the size,or market capitalization,of the stock market divided by the value of the stock market transactions over a period of time. 
C) the ratio of aggregate company sales over a period of time divided by the size,or market capitalization,of the stock market. 
D) none of the options 
A) the ratio of stock market transactions over a period of time divided by the size,or market capitalization,of the stock market. 
B) the ratio the size,or market capitalization,of the stock market divided by the value of the stock market transactions over a period of time. 
C) the ratio of aggregate company sales over a period of time divided by the size,or market capitalization,of the stock market. 
D) none of the options

Question 2

A type of non-continuous exchange trading system is crowd trading.

Accepted Answer

A) Unlike a call market in which there is a common price for all trades,several bilateral trades may take place at different prices in crowd trading. 
B) Unlike a continuous market in which there is a common price for all trades,several bilateral trades may take place at different prices. 
C) Unlike a call market in which several bilateral trades may take place at different prices there is a common price for all trades in a call market. 
D) none of the options 
A) Unlike a call market in which there is a common price for all trades,several bilateral trades may take place at different prices in crowd trading. 
B) Unlike a continuous market in which there is a common price for all trades,several bilateral trades may take place at different prices. 
C) Unlike a call market in which several bilateral trades may take place at different prices there is a common price for all trades in a call market. 
D) none of the options

Question 3

As a measure of liquidity,

Accepted Answer

A) generally,the lower the turnover,the greater the liquidity of a secondary stock market. 
B) generally,the higher the turnover,the greater the liquidity of a secondary stock market. 
C) the more a financial asset gurgles when shook the greater the liquidity. 
D) none of the options 
A) generally,the lower the turnover,the greater the liquidity of a secondary stock market. 
B) generally,the higher the turnover,the greater the liquidity of a secondary stock market. 
C) the more a financial asset gurgles when shook the greater the liquidity. 
D) none of the options

Question 4

"Yankee" stock offerings are

Accepted Answer

A) shares in foreign companies originally sold to U.S.investors. 
B) dollar-denominated shares in foreign companies originally sold to U.S.investors. 
C) U.S.stocks held abroad. 
D) none of the options 
A) shares in foreign companies originally sold to U.S.investors. 
B) dollar-denominated shares in foreign companies originally sold to U.S.investors. 
C) U.S.stocks held abroad. 
D) none of the options

Question 5

The exchange markets in the U.S.are

Accepted Answer

A) agency markets. 
B) auction markets. 
C) agency/auction markets. 
D) none of the options 
A) agency markets. 
B) auction markets. 
C) agency/auction markets. 
D) none of the options

Question 6

Public traders do not trade directly with one another in a dealer market.

Accepted Answer

A) True 
 B)False

Question 7

In the London market,Rolls-Royce stock closed at £0.875 per share.On the same day,the British Pound sterling to the U.S.dollar spot exchange rate was £0.6366/$1.00.Rolls Royce trades as an ADR in the OTC market in the United States.Five underlying Rolls-Royce shares are packaged into one ADR.If the Rolls Royce ADRs were trading at $5.75 when the underlying shares were trading in London at £0.875,ignoring transaction costs,the arbitrage trading profit would be

Accepted Answer

A) $0.00. 
B) $1.12. 
C) $2.12. 
D) $3.12. 
A) $0.00. 
B) $1.12. 
C) $2.12. 
D) $3.12.

Question 8

Only in the ________ did world investors start to invest sizable amounts in the emerging equity markets.

Accepted Answer

A) 1970s 
B) 1980s 
C) 1990s 
D) none of the options 
A) 1970s 
B) 1980s 
C) 1990s 
D) none of the options

Question 9

Which type of trading system is desirable for actively traded issues?

Accepted Answer

A) Continuous trading systems 
B) Call trading systems 
C) Crowd trading systems 
D) none of the options 
A) Continuous trading systems 
B) Call trading systems 
C) Crowd trading systems 
D) none of the options

Question 10

Global Registered Shares

Accepted Answer

A) are created when a MNC issues shares globally. 
B) purchased on one exchange (say NYS
E) is fully fungible with shares purchased on another exchange (e.g.,Frankfurt Stock Exchange). 
C) can trade in multiple currencies. 
D) all of the options 
A) are created when a MNC issues shares globally. 
B) purchased on one exchange (say NYS
E) is fully fungible with shares purchased on another exchange (e.g.,Frankfurt Stock Exchange). 
C) can trade in multiple currencies. 
D) all of the options

Question 11

Generally,the lower the turnover ratio,

Accepted Answer

A) the less liquid the secondary stock market,indicating difficulty in trading. 
B) the more liquid the secondary stock market,indicating difficulty in trading. 
C) the more liquid the primary stock market,indicating difficulty in trading. 
D) the more efficient the stock market is. 
A) the less liquid the secondary stock market,indicating difficulty in trading. 
B) the more liquid the secondary stock market,indicating difficulty in trading. 
C) the more liquid the primary stock market,indicating difficulty in trading. 
D) the more efficient the stock market is.

Question 12

In an agency market,the broker takes the client's order through the agent,who matches it with another public order.The agent can be viewed as

Accepted Answer

A) a dealer. 
B) a specialist. 
C) a broker's broker. 
D) none of the options 
A) a dealer. 
B) a specialist. 
C) a broker's broker. 
D) none of the options

Question 13

Transactions in shares of the iShares Funds will typically generate tax consequences.This is because

Accepted Answer

A) iShares Funds are obliged to distribute portfolio gains to shareholders. 
B) iShares Funds are not allowed to be held in tax-qualified accounts such as IRAs. 
C) iShares Funds feature daily resettlement. 
D) none of the options 
A) iShares Funds are obliged to distribute portfolio gains to shareholders. 
B) iShares Funds are not allowed to be held in tax-qualified accounts such as IRAs. 
C) iShares Funds feature daily resettlement. 
D) none of the options

Question 14

A "call market"

Accepted Answer

A) is OTC and over-the-phone. 
B) features an agent of the exchange that accumulates a batch of orders that are periodically executed by written or verbal auction throughout the day. 
C) provides traders with execution at certain prices. 
D) features an agent of the exchange that accumulates a batch of orders that are periodically executed by written or verbal auction throughout the day,and provides traders with execution at certain prices. 
A) is OTC and over-the-phone. 
B) features an agent of the exchange that accumulates a batch of orders that are periodically executed by written or verbal auction throughout the day. 
C) provides traders with execution at certain prices. 
D) features an agent of the exchange that accumulates a batch of orders that are periodically executed by written or verbal auction throughout the day,and provides traders with execution at certain prices.

Question 15

A stop order is an order to buy or sell a stock once the price of the stock reaches a specified price,known as

Accepted Answer

A) the stop price. 
B) the limit price. 
C) the last price. 
D) the sell price 
A) the stop price. 
B) the limit price. 
C) the last price. 
D) the sell price

Question 16

A common set of factors that affect equity returns include

Accepted Answer

A) macroeconomic variables that influence the overall economic environment in which the firm issuing the security conducts its business. 
B) exchange rate changes between the currency of the country issuing the stock and the currency of other countries where suppliers,customers,and investors of the firm reside. 
C) the industrial structure of the country in which the firm operates. 
D) all of the options 
A) macroeconomic variables that influence the overall economic environment in which the firm issuing the security conducts its business. 
B) exchange rate changes between the currency of the country issuing the stock and the currency of other countries where suppliers,customers,and investors of the firm reside. 
C) the industrial structure of the country in which the firm operates. 
D) all of the options

Question 17

In the Frankfurt market,Aldi stock closed at €5 per share.On the same day,the euro U.S.dollar spot exchange rate was €.625/$1.00.Aldi trades as an ADR in the OTC market in the United States.Five underlying Aldi shares are packaged into one ADR.The no-arbitrage U.S.price of one ADR is

Accepted Answer

A) €25.00. 
B) $15.625. 
C) $40. 
D) none of the options 
A) €25.00. 
B) $15.625. 
C) $40. 
D) none of the options

Question 18

Decompose the return an American would have if he had bought a German stock at €100 per share and sold it one year later at €120.The spot exchange rate one year ago was $1.50 = €1 and the spot rate prevailing at the end of the year was $1.55 = €1.

Accepted Answer

A) 24 percent total return; 20 percent asset return 
B) 20 percent total return; 16.77 percent asset return 
C) 16 percent total return; 20 percent asset return 
D) none of the options 
A) 24 percent total return; 20 percent asset return 
B) 20 percent total return; 16.77 percent asset return 
C) 16 percent total return; 20 percent asset return 
D) none of the options

Question 19

Advantages of cross-listing include

Accepted Answer

A) providing their shareholders with a higher degree of protection than may be available in the home country. 
B) a possible signal of the company's commitment to shareholder rights. 
C) possibly making investors,both at home and abroad,more willing to provide capital and to increase the value of the pre-existing shares. 
D) all of the options 
A) providing their shareholders with a higher degree of protection than may be available in the home country. 
B) a possible signal of the company's commitment to shareholder rights. 
C) possibly making investors,both at home and abroad,more willing to provide capital and to increase the value of the pre-existing shares. 
D) all of the options

Question 20

A market-value index

Accepted Answer

A) is calculated such that the proportion of the index a stock represents is determined by its proportion of the total market capitalization of all stocks in the index. 
B) is calculated as the average price of all the stocks in the index that trade that day,one example is the NASDAQ. 
C) is calculated like the DJIA. 
D) none of the options 
A) is calculated such that the proportion of the index a stock represents is determined by its proportion of the total market capitalization of all stocks in the index. 
B) is calculated as the average price of all the stocks in the index that trade that day,one example is the NASDAQ. 
C) is calculated like the DJIA. 
D) none of the options

A measure of liquidity for a stock market is the turnover ratio; defined as

A type of non-continuous exchange trading system is crowd trading.

As a measure of liquidity,

"Yankee" stock offerings are

The exchange markets in the U.S.are

Public traders do not trade directly with one another in a dealer market.

Only in the ________ did world investors start to invest sizable amounts in the emerging equity markets.

Which type of trading system is desirable for actively traded issues?

Global Registered Shares

Generally,the lower the turnover ratio,

In an agency market,the broker takes the client's order through the agent,who matches it with another public order.The agent can be viewed as

Transactions in shares of the iShares Funds will typically generate tax consequences.This is because

A "call market"

A stop order is an order to buy or sell a stock once the price of the stock reaches a specified price,known as

A common set of factors that affect equity returns include

In the Frankfurt market,Aldi stock closed at €5 per share.On the same day,the euro U.S.dollar spot exchange rate was €.625/$1.00.Aldi trades as an ADR in the OTC market in the United States.Five underlying Aldi shares are packaged into one ADR.The no-arbitrage U.S.price of one ADR is

Decompose the return an American would have if he had bought a German stock at €100 per share and sold it one year later at €120.The spot exchange rate one year ago was $1.50 = €1 and the spot rate prevailing at the end of the year was $1.55 = €1.

Advantages of cross-listing include

A market-value index

International Monetary System

Globalization and the Multinational Firm

Balance of Payments

Corporate Governance Around the World

The Market for Foreign Exchange

International Parity Relationships and Forecasting Foreign Exchange Rates

Futures and Options on Foreign Exchange

Management of Transaction Exposure

Management of Economic Exposure

Management of Translation Exposure

International Banking and Money Market

International Bond Market

Interest Rate and Currency Swaps

International Portfolio Investment

Foreign Direct Investment and Cross-Border Acquisitions

International Capital Structure and the Cost of Capital

International Capital Budgeting

Multinational Cash Management

International Trade Finance

International Tax Environment and Transfer Pricing

Filters

Exam 13: International Equity Markets

A measure of liquidity for a stock market is the turnover ratio; defined as

A type of non-continuous exchange trading system is crowd trading.

As a measure of liquidity,

"Yankee" stock offerings are

The exchange markets in the U.S.are

Public traders do not trade directly with one another in a dealer market.

Only in the ________ did world investors start to invest sizable amounts in the emerging equity markets.

Which type of trading system is desirable for actively traded issues?

Global Registered Shares

Generally,the lower the turnover ratio,

In an agency market,the broker takes the client's order through the agent,who matches it with another public order.The agent can be viewed as

Transactions in shares of the iShares Funds will typically generate tax consequences.This is because

A "call market"

A stop order is an order to buy or sell a stock once the price of the stock reaches a specified price,known as

A common set of factors that affect equity returns include

In the Frankfurt market,Aldi stock closed at €5 per share.On the same day,the euro U.S.dollar spot exchange rate was €.625/$1.00.Aldi trades as an ADR in the OTC market in the United States.Five underlying Aldi shares are packaged into one ADR.The no-arbitrage U.S.price of one ADR is

Decompose the return an American would have if he had bought a German stock at €100 per share and sold it one year later at €120.The spot exchange rate one year ago was $1.50 = €1 and the spot rate prevailing at the end of the year was $1.55 = €1.

Advantages of cross-listing include

A market-value index

International Monetary System

Globalization and the Multinational Firm

Balance of Payments

Corporate Governance Around the World

The Market for Foreign Exchange

International Parity Relationships and Forecasting Foreign Exchange Rates

Futures and Options on Foreign Exchange

Management of Transaction Exposure

Management of Economic Exposure

Management of Translation Exposure

International Banking and Money Market

International Bond Market

Interest Rate and Currency Swaps

International Portfolio Investment

Foreign Direct Investment and Cross-Border Acquisitions

International Capital Structure and the Cost of Capital

International Capital Budgeting

Multinational Cash Management

International Trade Finance

International Tax Environment and Transfer Pricing

Filters