International Financial Management Study Set 9

Business

Quiz 3 :

International Financial Markets

Quiz 3 :

International Financial Markets

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LIBOR is:
Free
Multiple Choice
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Answer:

A

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Eurobonds are certificates representing bundles of stock.
Free
True False
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Answer:

False

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The Basel II accord would:
Free
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Answer:

D

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The strike price is also known as the premium price.
True False
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The bid/ask spread for small retail transactions is commonly in the range of ____ per cent; the bid/ask spread for wholesale transactions is commonly in the range of ____ per cent.
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An investor engaging in a transaction whereby he or she contracts to purchase. British pounds one year from now is an example of a spot market transaction.
True False
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____ is not a factor that affects the bid/ask spread.
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If a French firm desires to avoid the risk from exchange rate fluctuations, and it will need C$200,000 in 90 days to make payment on imports from Canada, it could:
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The international money market is primarily served by:
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The market efficiency hypothesis is the simple statement that security prices fully reflect all available information.
True False
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A forward contract can be used to lock in the ____ of a specified currency for a future point in time.
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Forward markets for currencies of developing countries are:
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The main participants in the international money market are:
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The ADR of a British firm is convertible into 3 shares of stock. The share price of the firm was 30 pounds when the British market closed. When the US market opens, the pound is worth $1.63. The price of this ADR should be $____.
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A share of the ADR of a Dutch firm represents one share of that firm's stock that is traded on a Dutch stock exchange. The share price of the firm was 15 euros when the Dutch market closed. As the US market opens, the euro is worth $1.10. Thus, the price of the ADR should be ____.
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The US dollar is not ever used as a medium of exchange in:
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Loans of one year or longer extended by banks in Europe are called:
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A futures contract is a contract specifying a standard volume of a particular currency to be exchanged on a specific settlement date.
True False
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From 1944 to 1971, the exchange rate between any two currencies was typically:
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The international bond markets facilitate international transfers of short-term credit, thereby enabling governments and large corporations to borrow funds from various countries.
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