Question 1

In general,Standard & Poor's Emerging Markets Data Base classified a stock market as "emerging" if

Accepted Answer

A) it is located in a low- or middle-income economy as defined by the World Bank. 
B) its investable market capitalization is low relative to its most recent GNI figures. 
C) either a) or b) 
D) none of the above 
A) it is located in a low- or middle-income economy as defined by the World Bank. 
B) its investable market capitalization is low relative to its most recent GNI figures. 
C) either a) or b) 
D) none of the above

Question 2

Over the last few years,turnover ratios in many emerging markets remained low and market concentration ratios remained high,indicating

Accepted Answer

A) that investment opportunities in these markets have been improving. 
B) that investment opportunities in these markets have not been improving. 
C) that investment opportunities in these markets are about to improve. 
D) none of the above 
A) that investment opportunities in these markets have been improving. 
B) that investment opportunities in these markets have not been improving. 
C) that investment opportunities in these markets are about to improve. 
D) none of the above

Question 3

Generally,the higher the turnover ratio,

Accepted Answer

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

Question 4

Yankee stocks

Accepted Answer

A) often trade as ADRs and have higher risks than trading the actual shares. 
B) often trade as ADRs and have lower risks than trading the actual shares. 
C) are bank receipts representing a multiple of foreign shares deposited in a U.S.bank. 
D) both b and c 
A) often trade as ADRs and have higher risks than trading the actual shares. 
B) often trade as ADRs and have lower risks than trading the actual shares. 
C) are bank receipts representing a multiple of foreign shares deposited in a U.S.bank. 
D) both b and c

Question 5

A "primary" stock market is

Accepted Answer

A) a big internationally-important market like the NYSE. 
B) a market where corporations issue new shares to initial investors. 
C) where brokers and market makers trade. 
D) none of the above 
A) a big internationally-important market like the NYSE. 
B) a market where corporations issue new shares to initial investors. 
C) where brokers and market makers trade. 
D) none of the above

Question 6

The market capitalization of the developing world

Accepted Answer

A) is about 80 percent of the market capitalization of the entire world. 
B) is about 60 percent of the market capitalization of the entire world. 
C) is about 40 percent of the market capitalization of the entire world. 
D) is about 20 percent of the market capitalization of the entire world. 
A) is about 80 percent of the market capitalization of the entire world. 
B) is about 60 percent of the market capitalization of the entire world. 
C) is about 40 percent of the market capitalization of the entire world. 
D) is about 20 percent of the market capitalization of the entire world.

Question 7

iShares MSCI are

Accepted Answer

A) exchange traded funds that are subject to U.S.SEC and IRS diversification requirements. 
B) open-end mutual funds sold OTC. 
C) exchange traded funds that are NOT subject to U.S.SEC and IRS diversification requirements. 
D) none of the above 
A) exchange traded funds that are subject to U.S.SEC and IRS diversification requirements. 
B) open-end mutual funds sold OTC. 
C) exchange traded funds that are NOT subject to U.S.SEC and IRS diversification requirements. 
D) none of the above

Question 8

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 above 
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 above

Question 9

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 10

In which type of policy actions by the Fed can liquidity "dry up"?

Accepted Answer

A) Easy money 
B) Tight money 
C) Decrease in the reserve requirement 
D) Decrease in the discount rate 
A) Easy money 
B) Tight money 
C) Decrease in the reserve requirement 
D) Decrease in the discount rate

Question 11

An all-or-none order is a limit order either to buy or to sell a security in which the broker is directed to attempt to fill the entire amount of the order or none of it.An all-or-none order differs from a fill-or-kill order in that

Accepted Answer

A) with an all-or-none order immediate execution is not required. 
B) with an all-or-none order immediate execution is required. 
C) with an all-or-none order oversubscription is allowed-filling the order for more shares. 
D) none of the above 
A) with an all-or-none order immediate execution is not required. 
B) with an all-or-none order immediate execution is required. 
C) with an all-or-none order oversubscription is allowed-filling the order for more shares. 
D) none of the above

Question 12

Comparing agency versus dealer markets,which combination of the following statements is true? (i)- In a "dealer market," the broker takes the client's order through the agent,who matches it with another public order.
(ii)- In an "agency market," the broker takes the trade through the dealer,who participates in trades as a principal by buying and selling the security for his own account.
(iii)- In an "agency market," the broker takes the client's order through the agent,who matches it with another public order.
(iv)- In a "dealer market," the broker takes the trade through the dealer,who participates in trades as a principal by buying and selling the security for his own account.
(v)- An agent can be viewed as a "broker's broker."
(vi)- A dealer can be viewed as a "broker's broker."

Accepted Answer

A) (i), (ii), and (v) 
B) (i), (ii), and (vi) 
C) (iii), (iv), and (v) 
D) (iii), (iv), and (vi) 
A) (i), (ii), and (v) 
B) (i), (ii), and (vi) 
C) (iii), (iv), and (v) 
D) (iii), (iv), and (vi)

Question 13

The Paris Bourse was traditionally a call market.In a call market,an agent of the exchange accumulates,over a period of time,a batch of orders that are periodically executed by written or verbal auction throughout the trading day.Both market and limit orders are handled in this way.The major disadvantage of a call market is that

Accepted Answer

A) traders are not certain about the price at which their orders will transact because bid and ask quotations are not available prior to the call. 
B) traders are not certain about how many shares will be able to sell or buy at the price they quote because order volume is not available prior to the call. 
C) there is a lack of liquidity intercall. 
D) none of the above 
A) traders are not certain about the price at which their orders will transact because bid and ask quotations are not available prior to the call. 
B) traders are not certain about how many shares will be able to sell or buy at the price they quote because order volume is not available prior to the call. 
C) there is a lack of liquidity intercall. 
D) none of the above

Question 14

The sale of new common stock by corporations to initial investors occurs in

Accepted Answer

A) the primary market. 
B) the secondary market. 
C) the OTC market. 
D) the dealer market. 
A) the primary market. 
B) the secondary market. 
C) the OTC market. 
D) the dealer market.

Question 15

The sale of previously issued common stock traded between investors occurs in

Accepted Answer

A) the primary market. 
B) the secondary market. 
C) the on-the-run market. 
D) the dealer market. 
A) the primary market. 
B) the secondary market. 
C) the on-the-run market. 
D) the dealer market.

Question 16

A stop-limit order is an order to buy or sell a stock that combines the features of a stop order and a limit order.Once the stop price is touched in the market,the stop-limit order becomes a limit order to buy or to sell at the limit price.Which of the following are true?

Accepted Answer

A) The benefit of a stop-limit order is that the investor can control the price at which the trade will get executed. 
B) A stop-limit order may never get filled if the stock's price never reaches the specified limit price.This may happen especially in fast-moving markets where prices fluctuate wildly. 
C) The use of stop limit orders is much more frequent for stocks that trade on an exchange than in the over-the-counter (OT
C)  market. 
D) In addition, your broker-dealer may not allow you to place a stop limit order on some securities or accept a stop limit order for OTC stocks. 
E) All of the above are true 
A) The benefit of a stop-limit order is that the investor can control the price at which the trade will get executed. 
B) A stop-limit order may never get filled if the stock's price never reaches the specified limit price.This may happen especially in fast-moving markets where prices fluctuate wildly. 
C) The use of stop limit orders is much more frequent for stocks that trade on an exchange than in the over-the-counter (OT
C)  market. 
D) In addition, your broker-dealer may not allow you to place a stop limit order on some securities or accept a stop limit order for OTC stocks. 
E) All of the above are true

Question 17

A market order

Accepted Answer

A) is an instruction from a customer to a broker to buy or sell at the best price available when the order is received (immediately). 
B) is an instruction from a customer to a broker to buy or sell in a particular market (e.g.NYS
E) . 
C) is always and everywhere "fill or kill". 
D) is always and everywhere "good till cancelled". 
A) is an instruction from a customer to a broker to buy or sell at the best price available when the order is received (immediately). 
B) is an instruction from a customer to a broker to buy or sell in a particular market (e.g.NYS
E) . 
C) is always and everywhere "fill or kill". 
D) is always and everywhere "good till cancelled".

Question 18

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 19

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 above 
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 above

In general,Standard & Poor's Emerging Markets Data Base classified a stock market as "emerging" if

Over the last few years,turnover ratios in many emerging markets remained low and market concentration ratios remained high,indicating

Generally,the higher the turnover ratio,

Yankee stocks

A "primary" stock market is

The market capitalization of the developing world

iShares MSCI are

A common set of factors that affect equity returns include

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

In which type of policy actions by the Fed can liquidity "dry up"?

An all-or-none order is a limit order either to buy or to sell a security in which the broker is directed to attempt to fill the entire amount of the order or none of it.An all-or-none order differs from a fill-or-kill order in that

The sale of new common stock by corporations to initial investors occurs in

The sale of previously issued common stock traded between investors occurs in

A stop-limit order is an order to buy or sell a stock that combines the features of a stop order and a limit order.Once the stop price is touched in the market,the stop-limit order becomes a limit order to buy or to sell at the limit price.Which of the following are true?

A market order

Generally,the lower the turnover ratio,

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

Globalization and the Multinational Firm

International Monetary System

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

In general,Standard & Poor's Emerging Markets Data Base classified a stock market as "emerging" if

Over the last few years,turnover ratios in many emerging markets remained low and market concentration ratios remained high,indicating

Generally,the higher the turnover ratio,

Yankee stocks

A "primary" stock market is

The market capitalization of the developing world

iShares MSCI are

A common set of factors that affect equity returns include

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

In which type of policy actions by the Fed can liquidity "dry up"?

An all-or-none order is a limit order either to buy or to sell a security in which the broker is directed to attempt to fill the entire amount of the order or none of it.An all-or-none order differs from a fill-or-kill order in that

The sale of new common stock by corporations to initial investors occurs in

The sale of previously issued common stock traded between investors occurs in

A stop-limit order is an order to buy or sell a stock that combines the features of a stop order and a limit order.Once the stop price is touched in the market,the stop-limit order becomes a limit order to buy or to sell at the limit price.Which of the following are true?

A market order

Generally,the lower the turnover ratio,

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

Globalization and the Multinational Firm

International Monetary System

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