International Financial Management Study Set 9

LIBOR is:

Eurobonds are certificates representing bundles of stock.

The Basel II accord would:

The strike price is also known as the premium price.

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.

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.

____ is not a factor that affects the bid/ask spread.

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:

The international money market is primarily served by:

The market efficiency hypothesis is the simple statement that security prices fully reflect all available information.

A forward contract can be used to lock in the ____ of a specified currency for a future point in time.

Forward markets for currencies of developing countries are:

The main participants in the international money market are:

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 $____.

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 ____.

The US dollar is not ever used as a medium of exchange in:

Loans of one year or longer extended by banks in Europe are called:

A futures contract is a contract specifying a standard volume of a particular currency to be exchanged on a specific settlement date.

From 1944 to 1971, the exchange rate between any two currencies was typically:

The international bond markets facilitate international transfers of short-term credit, thereby enabling governments and large corporations to borrow funds from various countries.