FnB_Chơi đi học chi_Quản trị TCQT
Quiz by Dương Đăng Khoa
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40 questions
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- Q1Due to the risks involved in international business, firms shouldmaintain international business to no more than 20% of total businessonly consider international business in major countriesmaintain international business to no more than 35% of total businessNone of above30s
- Q2With regard to corporate goals, an MNC is mostly concerned with maximizing ____, and a purely domestic firm is mostly concerned with maximizing ____.shareholder wealth; shareholder wealthshort-term earnings; shareholder wealthshareholder wealth; short-term earningsshort-term earnings; sales volume30s
- Q3For the MNC, agency costs are typicallylarger than agency costs of a small purely domestic firmthe same as agency costs of a small purely domestic firmnon-existentsmaller than agency costs of a small purely domestic firm30s
- Q4The valuation of an MNC should rise when an event causes the expected cash flows from foreign to ____ and when foreign currencies denominating these cash flows are expected to ____.decrease; depreciateincrease; appreciateincrease; depreciatedecrease; appreciate30s
- Q5An increase in the current account deficit will place ____ pressure on the home currency value, other things equalupward or downward (depending on the size of the deficit)downwardnoupward30s
- Q6The World Bank was established to_____enhance economic development through non-subsidized loans (at market interest rates).enhance economic development of the private sector through investment in stock of corporations.enhance economic development through low-interest rate loans (below-market rates).enhance development solely in Asia through grants.30s
- Q7The International Development Association was established to_____enhance economic development through non-subsidized loans (at market interest rates).enhance economic development of the private sector through investment in stock of corporations.enhance development solely in Asia through grants.enhance economic development through low-interest rate loans (below-market rates).30s
- Q8Which of the following is not mentioned in the text as an additional risk resulting from international businessexposure to foreign economies.political risk.exchange rate fluctuations.interest rate risk.30s
- Q9Assume that a bank's bid rate on Swiss francs is $.45 and its ask rate is $.47. Its bid-ask percentage spread isabout 4.17%.about 4.44%.about 4.03%.None of above30s
- Q10The bid/ask spread for small retail transactions is commonly in the range of ____ percent?VolumeOrder costsAll of aboveInventory costs30s
- Q11Which of the following statement is incorrect regarding to spot market liquidity?The spot markets for heavily traded currencies such as the Japanese yen are very liquid.If a currency is illiquid, an MNC is typically able to quickly purchase that currency at a reasonable exchange rate.A currency's liquidity affects the ease with which an MNC can obtain or sell that currency.The more willing buyers and sellers there are, the more liquid a market is.30s
- Q12Which of the following is not the main objective of the international money market?medium-term lending.placing newly issued stock in foreign markets.placing bonds with investors.All of above30s
- Q13What is main purpose of calculating the bid-ask spread on an exchange rate?The bid-ask spread determines how an exchange rate will change.The bid-ask spread determines the currency option premium.The bid-ask spread determines the forward premium.The bid-ask spread determines the transaction cost of foreign exchange.30s
- Q14Assume that $1 is equal to .85 British Pound and 98 yen. What is the value of British Pound in Yen111.49121.23None of above0.008730s
- Q15Which of the following is an incorrect bid/ask quotation for the Taiwan dollar?$.653/$.651$.349/$.350$.351/$.353$.350/$.35130s