"[MULTIPLE-SSELECT] Selling commercial paper or bonds is a form of
{
= debt financing
venture capital
equity financing
}"
"[MULTIPLE-SSELECT] Based on the Milken Institute's index to compare the quality of the financial infrastructures that support entrepreneurial activity, the top country is
{
the United States
= Hong Kong
Singapore
Switzerland
}"
"[MULTIPLE-SSELECT] Microcredit involves
{
large and secured loans to poor people
small and secured loans to poor people
small and secured loans to poor people
= small and unsecured loans to poor people
}"
"[MULTIPLE-SSELECT] Financial institutions that can provide financing include
{
DISC
middlemen's trade credit
FSC
= joint venture
factor
}"
"[MULTIPLE-SSELECT] For American investors interested in buying foreign securities, US banks issue _____ which represent ownership of a set amount of the respective security on deposit in a foreign branch
{
IFC
SBA
bank receipts
= ADRs
}"
"[MULTIPLE-SSELECT] Compared to factors, forfaiters
{
do not want a one-shot deal
specialize in short-term receivables
= are more willing to deal with high-risk countries
}"
"[MULTIPLE-SSELECT] This type of financing combines an official, conventional loan with either outright grants or foreign aid grants at below- market rates
{
factoring
bank guarantee
export credit
= blended credit
}"
"[MULTIPLE-SSELECT] The purpose of this agency is to institute an open and stable monetary system
{
World Bank
IDA
IFC
= IMF
}"
"[MULTIPLE-SSELECT] A currency becomes hard when
{
it is backed by gold
a government declares that it is an international currency
it has been around for a long time
= people trust it
}"
"[MULTIPLE-SSELECT] The world's most international currency is the
{
= US dollar
British pound
euro
Japanese yen
}"
"[MULTIPLE-SSELECT] The amount of US currency in circulation outside of the United States is about
{
one quarter
one third
one half
= two-thirds
}"
"[MULTIPLE-SSELECT] Until recently, this currency dominated nations' official foreign exchange reserves
{
= US dollar
British pound
euro
Japanese yen
}"
"[MULTIPLE-SSELECT] An international currency does not fulfill this function
{
medium of exchange
= mode of communication
store of value
unit of account
}"
"[MULTIPLE-SSELECT] An international currency requires
{
confidence in the value of the currency
confidence in the issuing country's political stability
the issuing country's financial markets being substantially free of controls
= all of the above
}"
"[MULTIPLE-SSELECT] The foreign exchange market does not perform this function
{
financing
clearing
= consulting
hedging
}"
"[MULTIPLE-SSELECT] This is a cash market where foreign exchange is available for immediate delivery
{
options
= spot
futures
forward
}"
"[MULTIPLE-SSELECT] The exchange rate affects
{
the cost of imported goods
the cost of exported goods
the country's inflation rate
a firm's employment
= all of the above
}"
"[MULTIPLE-SSELECT] Countries that wish to stimulate exports want the value of their own currency to
{
rise
= drop
hold steady
}"
"[MULTIPLE-SSELECT] When the US dollar is devalued, it adversely affects
{
US exports
US employment
= US consumer welfare
}"
"[MULTIPLE-SSELECT] A country wanting to maximize consumer welfare should attempt to make the value of its currency
{
steady
= increase
decline
weak
}"
"[MULTIPLE-SSELECT] The J Curve explains that, right after devaluation, a country's trade deficit will
{
quickly improve
worsen over the long term
= worsen initially before recovering sharply
unpredictable
}"
"[MULTIPLE-SSELECT] Price-specie-flow mechanism maintains the equilibrium exchange rate for this system
{
= gold standard
crawling peg
sliding parity
wide band
floating
}"
"[MULTIPLE-SSELECT] This is a fixed system of exchange rate
{
= par value
wide band
crawling peg
flexible
}"
"[MULTIPLE-SSELECT] This exchange-rate system adjusts the rate slowly by small amounts on a continuous basis
{
par value
wide band
= crawling peg
flexible
gold standard
}"
"[MULTIPLE-SSELECT] Brazil adjusts its currency continuously while keeping the adjustment small at any point in time This system is
{
adjustable peg
wide band
gold standard
floating
= crawling peg
}"
"[MULTIPLE-SSELECT] This exchange-rate system does not allow the value of a currency to fluctuate at all
{
gold standard
soft peg
par value
wide band
= all of them allow some degree of fluctuation
}"
"[MULTIPLE-SSELECT] The United States employs this exchange rate system
{
fixed rate
gold standard
semi-fixed rate
= floating rate
}"
"[MULTIPLE-SSELECT] One problem of the floating system is that it encourages
{
uncertainty
speculation
inflation
= short-term volatility
}"
"[MULTIPLE-SSELECT] When a central bank intervenes to influence exchange rates, the float of a currency is
{
clean
= dirty
filthy
}"
"[MULTIPLE-SSELECT] Smaller companies have trouble obtaining contracts in this market
{
spot
futures
= forward
options
}"
"[MULTIPLE-SSELECT] This contract is not "standardized"
{
futures
= forward
options
}"
"[MULTIPLE-SSELECT] A buyer of this contract has the right but not the obligation to complete a transaction
{
futures
forward
= options
spot
}"
"[MULTIPLE-SSELECT] When foreign currencies are rising against the US dollar, a US firm should
{
= make immediate payments to foreign creditors (ie, leading)
delay making payments to foreign creditors (ie, lagging)
hasten collection of debts from abroad
}"
"[MULTIPLE-SSELECT] When the buyer is in a soft currency but the seller is in a hard currency, the seller should use the _____ currency for invoicing
{
= seller's
buyer's
third
}"
"[MULTIPLE-SSELECT] A seller should bill in a _____ currency
{
= strong
moderate
weak
}"