Question 1

Analysts who believe globalization of capital has serious risks argue that _____.

Accepted Answer

A)  capital does not shift in and out of countries as quickly as conditions change 
B)  individual nations are becoming more vulnerable to speculative capital 
C)  deregulation of trade is helpful for the economic growth in a country 
D)  most of the capital that moves internationally is pursuing long term gains 
A)  capital does not shift in and out of countries as quickly as conditions change 
B)  individual nations are becoming more vulnerable to speculative capital 
C)  deregulation of trade is helpful for the economic growth in a country 
D)  most of the capital that moves internationally is pursuing long term gains

Question 2

Identify the risks associated with global capital markets.

Accepted Answer

According to some analysts,deregulation

Question 3

Explain the changes observed in the risk of investments when an investor increases the number of stocks in her portfolio.

Accepted Answer

As an investor increases the number of s

Question 4

Debt loans include cash loans from banks and funds raised from the sale of corporate bonds to investors.

Accepted Answer

A) True 
 B)False

Question 5

Domestic currency deposits are regulated in most industrialized countries.

Accepted Answer

A) True 
 B)False

Question 6

An equity loan is made when _____.

Accepted Answer

A)  a corporation pledge equities or other assets to borrow money 
B)  corporations avail cash loans from individuals 
C)  a corporation sells stock to investors 
D)  corporations issue bonds to individual investors 
A)  a corporation pledge equities or other assets to borrow money 
B)  corporations avail cash loans from individuals 
C)  a corporation sells stock to investors 
D)  corporations issue bonds to individual investors

Question 7

When value of U.S.dollars goes down,_____.

Accepted Answer

A)  bonds that are denominated in dollar will produce more returns 
B)  foreign depositors in the U.S will benefit 
C)  foreign borrowers will garner benefits 
D)  investors tend to favor bonds that are denominated in dollar 
A)  bonds that are denominated in dollar will produce more returns 
B)  foreign depositors in the U.S will benefit 
C)  foreign borrowers will garner benefits 
D)  investors tend to favor bonds that are denominated in dollar

Question 8

A purely domestic capital market faces the problem of _____.

Accepted Answer

A)  foreign exchange risk 
B)  limited liquidity 
C)  lack of regulation 
D)  deregulated markets 
A)  foreign exchange risk 
B)  limited liquidity 
C)  lack of regulation 
D)  deregulated markets

Question 9

Borrowers can hedge against foreign exchange risks by entering into a forward contract.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is an advantage that banks have when they deal with foreign currencies?

Accepted Answer

A)  Interest payments to customers are low when dealing with foreign currencies. 
B)  Accounts need not be maintained when dealing with foreign currencies. 
C)  Risks that investors face are low when dealing with foreign currencies. 
D)  Governments give banks more freedom when dealing with foreign currencies. 
A)  Interest payments to customers are low when dealing with foreign currencies. 
B)  Accounts need not be maintained when dealing with foreign currencies. 
C)  Risks that investors face are low when dealing with foreign currencies. 
D)  Governments give banks more freedom when dealing with foreign currencies.

Question 11

What are the financial advantages that make the Eurocurrency market attractive to both depositors and borrowers?

Accepted Answer

The main factor that makes the Eurocurre

Question 12

Commercial banks perform a direct connection function in capital markets.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is true of the deregulation of financial industry?

Accepted Answer

A)  Countries can strengthen the global capital market by encouraging strict regulations. 
B)  Financial services have historically been the most deregulated of all industries. 
C)  Deregulation helped the development of an international capital market. 
D)  Deregulation compels financial services companies to remain as domestic companies. 
A)  Countries can strengthen the global capital market by encouraging strict regulations. 
B)  Financial services have historically been the most deregulated of all industries. 
C)  Deregulation helped the development of an international capital market. 
D)  Deregulation compels financial services companies to remain as domestic companies.

Question 14

_____ are sold outside of the borrower's country and are denominated in the currency of the country in which they are issued.

Accepted Answer

A)  Micro bonds 
B)  Eurobonds 
C)  Foreign bonds 
D)  Regulatory bonds 
A)  Micro bonds 
B)  Eurobonds 
C)  Foreign bonds 
D)  Regulatory bonds

Question 15

Which of the following is a disadvantage of global capital market?

Accepted Answer

A)  Foreign investments may be driven by speculative flows in the market. 
B)  A truly global market reduces the liquidity of investments. 
C)  The availability of capital is low in a global capital market. 
D)  The cost of capital is more in a global market than a domestic market. 
A)  Foreign investments may be driven by speculative flows in the market. 
B)  A truly global market reduces the liquidity of investments. 
C)  The availability of capital is low in a global capital market. 
D)  The cost of capital is more in a global market than a domestic market.

Question 16

A debt loan requires a corporation to repay a predetermined portion of the loan amount at regular intervals regardless of how much profit it is making.

Accepted Answer

A) True 
 B)False

Question 17

Systematic risk refers to the movements in a stock portfolio's value that are attributable to macroeconomic forces affecting all firms in an economy.

Accepted Answer

A) True 
 B)False

Question 18

United States sells bonds that are denominated in dollars in Europe.This is an example of a _____ bond.

Accepted Answer

A)  foreign 
B)  Euro 
C)  micro 
D)  regulatory 
A)  foreign 
B)  Euro 
C)  micro 
D)  regulatory

Question 19

Describe a fixed-rate bond.

Accepted Answer

The most common kind of bond is a fixed-

Question 20

Hedge funds position themselves to make "long bets" on assets that they think will increase in value.

Accepted Answer

A) True 
 B)False

Analysts who believe globalization of capital has serious risks argue that _____.

Identify the risks associated with global capital markets.

Explain the changes observed in the risk of investments when an investor increases the number of stocks in her portfolio.

Debt loans include cash loans from banks and funds raised from the sale of corporate bonds to investors.

Domestic currency deposits are regulated in most industrialized countries.

An equity loan is made when _____.

When value of U.S.dollars goes down,_____.

A purely domestic capital market faces the problem of _____.

Borrowers can hedge against foreign exchange risks by entering into a forward contract.

Which of the following is an advantage that banks have when they deal with foreign currencies?

What are the financial advantages that make the Eurocurrency market attractive to both depositors and borrowers?

Commercial banks perform a direct connection function in capital markets.

Which of the following statements is true of the deregulation of financial industry?

_____ are sold outside of the borrower's country and are denominated in the currency of the country in which they are issued.

Which of the following is a disadvantage of global capital market?

A debt loan requires a corporation to repay a predetermined portion of the loan amount at regular intervals regardless of how much profit it is making.

Systematic risk refers to the movements in a stock portfolio's value that are attributable to macroeconomic forces affecting all firms in an economy.

United States sells bonds that are denominated in dollars in Europe.This is an example of a _____ bond.

Describe a fixed-rate bond.

Hedge funds position themselves to make "long bets" on assets that they think will increase in value.

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 12: The Global Capital Market

Analysts who believe globalization of capital has serious risks argue that _____.

Identify the risks associated with global capital markets.

Explain the changes observed in the risk of investments when an investor increases the number of stocks in her portfolio.

Debt loans include cash loans from banks and funds raised from the sale of corporate bonds to investors.

Domestic currency deposits are regulated in most industrialized countries.

An equity loan is made when _____.

When value of U.S.dollars goes down,_____.

A purely domestic capital market faces the problem of _____.

Borrowers can hedge against foreign exchange risks by entering into a forward contract.

Which of the following is an advantage that banks have when they deal with foreign currencies?

What are the financial advantages that make the Eurocurrency market attractive to both depositors and borrowers?

Commercial banks perform a direct connection function in capital markets.

Which of the following statements is true of the deregulation of financial industry?

_____ are sold outside of the borrower's country and are denominated in the currency of the country in which they are issued.

Which of the following is a disadvantage of global capital market?

A debt loan requires a corporation to repay a predetermined portion of the loan amount at regular intervals regardless of how much profit it is making.

Systematic risk refers to the movements in a stock portfolio's value that are attributable to macroeconomic forces affecting all firms in an economy.

United States sells bonds that are denominated in dollars in Europe.This is an example of a _____ bond.

Describe a fixed-rate bond.

Hedge funds position themselves to make "long bets" on assets that they think will increase in value.

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters