Question 1

The difference between countries in terms of company controls can be categorized into market-oriented and ____________ systems.

Accepted Answer

A) bank-centered 
B) Anglo-Saxon 
C) debt-denominated 
D) keiretsu 
A) bank-centered 
B) Anglo-Saxon 
C) debt-denominated 
D) keiretsu A

Question 2

Financial deregulation began in ____ in 1981 and in _____ in 1986.

Accepted Answer

A) Italy,Germany 
B) England,France 
C) the U.S. ,Japan 
D) in the European Union,NAFTA 
A) Italy,Germany 
B) England,France 
C) the U.S. ,Japan 
D) in the European Union,NAFTA C

Question 3

Why are privately placed bonds more difficult to sell than publicly issued bonds?

Accepted Answer

A) they are usually commercial bank loans 
B) the presence of customized covenants 
C) funds come from private investors 
D) underwriting is required 
A) they are usually commercial bank loans 
B) the presence of customized covenants 
C) funds come from private investors 
D) underwriting is required B

Question 4

A U.S.company has the following choices of financial markets in which to raise capital.Which one will it most often prefer?

Accepted Answer

A) foreign bond 
B) foreign bank 
C) a new issue of common stock 
D) domestic banks 
A) foreign bond 
B) foreign bank 
C) a new issue of common stock 
D) domestic banks

Question 5

How is the investment banker compensated?

Accepted Answer

A) by the spread between the purchase and sale price of the security they are marketing 
B) a flat fee on the total purchase value of the original issue 
C) a flat fee on the sale value of the original issue 
D) using a straight commission percentage on all sales they place of the securities 
A) by the spread between the purchase and sale price of the security they are marketing 
B) a flat fee on the total purchase value of the original issue 
C) a flat fee on the sale value of the original issue 
D) using a straight commission percentage on all sales they place of the securities

Question 6

Which one of the following is NOT a consequence of a well-functioning financial market?

Accepted Answer

A) greater capital accumulation 
B) better projects get financed 
C) lower cost of capital 
D) most projects get financed 
A) greater capital accumulation 
B) better projects get financed 
C) lower cost of capital 
D) most projects get financed

Question 7

Which one of the following economic policies would the international financial markets tend to reward?

Accepted Answer

A) increased tariffs 
B) reduced government ownership of private firms 
C) a system of government currency controls 
D) more government protection of infant-industries 
A) increased tariffs 
B) reduced government ownership of private firms 
C) a system of government currency controls 
D) more government protection of infant-industries

Question 8

A multinational corporation attempting to secure an airport construction project involving billions of dollars in cost would be best advised to apply to the _________ for funding.

Accepted Answer

A) World Bank 
B) London banking market 
C) New York bond market 
D) Tokyo foreign bond market 
A) World Bank 
B) London banking market 
C) New York bond market 
D) Tokyo foreign bond market

Question 9

Usually placed with life insurance companies and pension funds,these bonds are sold directly to only a limited number of investors.They are known as

Accepted Answer

A) publicly issued bonds 
B) credit swaps 
C) currency swaps 
D) privately placed bonds 
A) publicly issued bonds 
B) credit swaps 
C) currency swaps 
D) privately placed bonds

Question 10

The process of securitization reflects all of the following EXCEPT

Accepted Answer

A) new technology that has lowered the costs of compiling,accessing,and manipulating data 
B) financial deregulation that raised the cost of funds to banks 
C) lower costs of accessing public markets directly 
D) greater emphasis on customer relations 
A) new technology that has lowered the costs of compiling,accessing,and manipulating data 
B) financial deregulation that raised the cost of funds to banks 
C) lower costs of accessing public markets directly 
D) greater emphasis on customer relations

Question 11

Which of the following has been MOST helped by the decline in the cost of accessing the public financial markets?

Accepted Answer

A) smaller and less well-known companies 
B) larger firms who have an extensive global presence 
C) governments seeking to market their sovereign debt 
D) developing economies 
A) smaller and less well-known companies 
B) larger firms who have an extensive global presence 
C) governments seeking to market their sovereign debt 
D) developing economies

Question 12

Which one of the following securities in the foreign bond markets has the least amount of risk to the investor?

Accepted Answer

A) samurai bond 
B) shogun bond 
C) convertible bond 
D) equity warrants 
A) samurai bond 
B) shogun bond 
C) convertible bond 
D) equity warrants

Question 13

Suppose the government of Ghana is seeking concessionary financing to build 100 new schools,which of the following agencies is most likely to provide such financing?

Accepted Answer

A) the World Bank 
B) the International Monetary Fund 
C) the International Finance Corporation 
D) the International Development Agency 
A) the World Bank 
B) the International Monetary Fund 
C) the International Finance Corporation 
D) the International Development Agency

Question 14

Which of the following banking practice would be found more often under the CEJ model of corporate governance?

Accepted Answer

A) emphasis on shareholder value 
B) the importance of equity financing 
C) control by institutional shareholders 
D) universal banking 
A) emphasis on shareholder value 
B) the importance of equity financing 
C) control by institutional shareholders 
D) universal banking

Question 15

Which one of the following banks is considered the most important in the development bank industry?

Accepted Answer

A) Asian Development Bank 
B) World Bank 
C) African Development Bank 
D) European Bank for Reconstruction and Development 
A) Asian Development Bank 
B) World Bank 
C) African Development Bank 
D) European Bank for Reconstruction and Development

Question 16

Selling stock overseas is attractive to corporations because it

Accepted Answer

A) may raise the price of the company's stock 
B) improves the company's visibility in local markets 
C) provides a pool of patient investors who are not focusing exclusively on next quarter's profits 
D) a and b only 
A) may raise the price of the company's stock 
B) improves the company's visibility in local markets 
C) provides a pool of patient investors who are not focusing exclusively on next quarter's profits 
D) a and b only

Question 17

As the cost of gathering information on foreign firms continues to decrease,___ should become an increasingly more cost-effective means of raising funds internationally.

Accepted Answer

A) international securitization 
B) international financial intermediation 
C) international bank lending 
D) international portfolio investment 
A) international securitization 
B) international financial intermediation 
C) international bank lending 
D) international portfolio investment

Question 18

Which one of the following factors does NOT promote well-functioning financial markets?

Accepted Answer

A) secure property rights 
B) high tariffs 
C) contracts that are easily enforced 
D) transparency in financial statements 
A) secure property rights 
B) high tariffs 
C) contracts that are easily enforced 
D) transparency in financial statements

Question 19

The most preferred form of securities for funding by firms in the U.S.has been

Accepted Answer

A) debt 
B) preferred stock 
C) common stock 
D) stock derivatives 
A) debt 
B) preferred stock 
C) common stock 
D) stock derivatives

Question 20

Which one of the following does NOT reflect the process of securitization?

Accepted Answer

A) new technology that has lowered the costs of compiling,accessing,and manipulating data 
B) financial deregulation that requires more equity financing and higher cost of funds to banks 
C) lower costs of accessing public markets directly 
D) financial deregulation that made the search for funds less competitive for banks 
A) new technology that has lowered the costs of compiling,accessing,and manipulating data 
B) financial deregulation that requires more equity financing and higher cost of funds to banks 
C) lower costs of accessing public markets directly 
D) financial deregulation that made the search for funds less competitive for banks

The difference between countries in terms of company controls can be categorized into market-oriented and ____________ systems.

Financial deregulation began in in 1981 and in _ in 1986.

Why are privately placed bonds more difficult to sell than publicly issued bonds?

A U.S.company has the following choices of financial markets in which to raise capital.Which one will it most often prefer?

How is the investment banker compensated?

Which one of the following is NOT a consequence of a well-functioning financial market?

Which one of the following economic policies would the international financial markets tend to reward?

A multinational corporation attempting to secure an airport construction project involving billions of dollars in cost would be best advised to apply to the _________ for funding.

Usually placed with life insurance companies and pension funds,these bonds are sold directly to only a limited number of investors.They are known as

The process of securitization reflects all of the following EXCEPT

Which of the following has been MOST helped by the decline in the cost of accessing the public financial markets?

Which one of the following securities in the foreign bond markets has the least amount of risk to the investor?

Suppose the government of Ghana is seeking concessionary financing to build 100 new schools,which of the following agencies is most likely to provide such financing?

Which of the following banking practice would be found more often under the CEJ model of corporate governance?

Which one of the following banks is considered the most important in the development bank industry?

Selling stock overseas is attractive to corporations because it

As the cost of gathering information on foreign firms continues to decrease,___ should become an increasingly more cost-effective means of raising funds internationally.

Which one of the following factors does NOT promote well-functioning financial markets?

The most preferred form of securities for funding by firms in the U.S.has been

Which one of the following does NOT reflect the process of securitization?

Introduction

The Determination of Exchange Rates

The International Monetary System

Parity Conditions in International Finance and Currency Forecasting

The Balance of Payments and International Economic Linkages

Country Risk Analysis

The Foreign Exchange Market

Currency Futures and Options Markets

Swaps and Interest Rate Derivatives

Measuring and Managing Translation and Transaction Exposure

Measuring and Managing Economic Exposure

Functions of Euromarkets

The Cost of Capital for Foreign Investments

Examining International Portfolio Investing

Corporate Strategy and Foreign Direct Investment

Capital Budgeting for the Multinational Corporation

Financing Foreign Trade

Current Asset Management and Short-Term Financing

Managing the Multinational Financial System

Filters

Exam 12: International Financing and National Capital Markets

The difference between countries in terms of company controls can be categorized into market-oriented and ____________ systems.

Financial deregulation began in ____ in 1981 and in _____ in 1986.

Why are privately placed bonds more difficult to sell than publicly issued bonds?

A U.S.company has the following choices of financial markets in which to raise capital.Which one will it most often prefer?

How is the investment banker compensated?

Which one of the following is NOT a consequence of a well-functioning financial market?

Which one of the following economic policies would the international financial markets tend to reward?

A multinational corporation attempting to secure an airport construction project involving billions of dollars in cost would be best advised to apply to the _________ for funding.

Usually placed with life insurance companies and pension funds,these bonds are sold directly to only a limited number of investors.They are known as

The process of securitization reflects all of the following EXCEPT

Which of the following has been MOST helped by the decline in the cost of accessing the public financial markets?

Which one of the following securities in the foreign bond markets has the least amount of risk to the investor?

Suppose the government of Ghana is seeking concessionary financing to build 100 new schools,which of the following agencies is most likely to provide such financing?

Which of the following banking practice would be found more often under the CEJ model of corporate governance?

Which one of the following banks is considered the most important in the development bank industry?

Selling stock overseas is attractive to corporations because it

As the cost of gathering information on foreign firms continues to decrease,___ should become an increasingly more cost-effective means of raising funds internationally.

Which one of the following factors does NOT promote well-functioning financial markets?

The most preferred form of securities for funding by firms in the U.S.has been

Which one of the following does NOT reflect the process of securitization?

Introduction

The Determination of Exchange Rates

The International Monetary System

Parity Conditions in International Finance and Currency Forecasting

The Balance of Payments and International Economic Linkages

Country Risk Analysis

The Foreign Exchange Market

Currency Futures and Options Markets

Swaps and Interest Rate Derivatives

Measuring and Managing Translation and Transaction Exposure

Measuring and Managing Economic Exposure

Functions of Euromarkets

The Cost of Capital for Foreign Investments

Examining International Portfolio Investing

Corporate Strategy and Foreign Direct Investment

Capital Budgeting for the Multinational Corporation

Financing Foreign Trade

Current Asset Management and Short-Term Financing

Managing the Multinational Financial System

Filters

Financial deregulation began in in 1981 and in _ in 1986.