"[TRUE-FALSE] The financing needs of the seller and buyer are usually the same {FALSE}" "[TRUE-FALSE] MNCs with presence in developing economies have significantly higher market values than MNCs that operate only in advanced economies {TRUE}" "[TRUE-FALSE] In Asia, there is still too much dependence on bank financing {TRUE}" "[TRUE-FALSE] Stocks have historically played a relatively minor role in corporate financing in many European countries {TRUE}" "[TRUE-FALSE] Microcredit involves makings small unsecured loans to poor people {TRUE}" "[TRUE-FALSE] Factoring houses buy accounts receivable {TRUE}" "[TRUE-FALSE] Unlike factors, forfaiters tend to work with medium-term receivables rather than short-term receivables {TRUE}" "[TRUE-FALSE] A hard currency is hard because of its gold backing {FALSE}" "[TRUE-FALSE] For a currency to become an international currency, the issuing country must possess financial markets that are substantially free of controls {TRUE}" "[TRUE-FALSE] A currency becomes hard or international when the issuing country passes a law for this purpose {FALSE}" "[TRUE-FALSE] A global currency is impossible {TRUE}" "[TRUE-FALSE] Inflation makes it impossible to have a global currency {TRUE}" "[TRUE-FALSE] The foreign exchange market has a central trading floor where buyers and sellers meet {FALSE}" "[TRUE-FALSE] Business firms do not need to hedge their currency exposure because losses from currency fluctuation are offset by windfall profit in the long run {FALSE}" "[TRUE-FALSE] The spot rate is irrelevant for the preparation of price quotations {TRUE}" "[TRUE-FALSE] The foreign exchange rate is simply a price {TRUE}" "[TRUE-FALSE] Inflation discourages lending but encourages borrowing {TRUE}" "[TRUE-FALSE] A currency's tendency to get out of equilibrium is caused by trade deficits but not trade surpluses {FALSE}" "[TRUE-FALSE] When the US dollar declines in value, American exporters find it more difficult to export {FALSE}" "[TRUE-FALSE] When the US dollar rises in value, it maximizes US consumer welfare but adversely affects US exports and employment {TRUE}" "[TRUE-FALSE] Dollar devaluation makes US products competitive abroad but does not maximize American consumers' welfare {TRUE}" "[TRUE-FALSE] The J Curve phenomenon explains why the trade deficit may get worse after devaluation before recovering later {TRUE}" "[TRUE-FALSE] Devaluation may aggravate inflation {TRUE}" "[TRUE-FALSE] The price-specie-flow mechanism explains that imports will lead to less gold at home, resulting in less money supply {TRUE}" "[TRUE-FALSE] The IMF discourages any use of multiple exchange rates {TRUE}" "[TRUE-FALSE] Dirty floating means that central banks are not willing or able to intervene to support their currencies {FALSE}" "[TRUE-FALSE] Central banks' combined resources are not adequate to reverse a fundamental trend in the foreign exchange market {TRUE}" "[TRUE-FALSE] There is evidence that countries have moved away from intermediate exchange rate regimes toward floating {TRUE}" "[TRUE-FALSE] The IMF requires all member countries to use the same exchange rate regime {FALSE}" "[TRUE-FALSE] The IMF allows member countries to pick their own exchange rate regime {TRUE}" "[TRUE-FALSE] The fixed rate system provides speculators a one-way, no-lose bet {TRUE}" "[TRUE-FALSE] Floating rates do not work well during recessions {TRUE}" "[TRUE-FALSE] Floating rates create a high degree of short-term volatility and the large medium-term swings in exchange rates {TRUE}" "[TRUE-FALSE] Developing countries have realized more benefits than problems from floating exchange rates {TRUE}" "[TRUE-FALSE] Experience has shown that fixed rates work well for a prolonged period {FALSE}" "[TRUE-FALSE] Other systems have just as much, if not more of the same flaws, as the floating system {TRUE}" "[TRUE-FALSE] The financial crises were experienced by many emerging markets that maintained soft pegs {TRUE}" "[TRUE-FALSE] The IMF has a -variable macroeconomic model to serve as an early warning system for a currency in trouble {TRUE}" "[TRUE-FALSE] Regarding foreign exchange management products, the first-generation product (ie, forward contracts) is more popular among users than the second-generation (eg, options) and third-generation products (eg, warrants) {TRUE}" "[TRUE-FALSE] ETFs (exchange traded funds) allow stock indices and currencies to be traded as if they were stocks {TRUE}" "[TRUE-FALSE] ETNs (exchange traded notes) allow investors to hedge their assets denominated in US dollars {TRUE}" "[TRUE-FALSE] Multinationals may be able to employ a natural hedge by matching resources and costs in the same currency {TRUE}" "[TRUE-FALSE] There is no relationship between a country's inflation rate and the value of its currency {FALSE}" "[TRUE-FALSE] When both the buyer and the seller are in soft currencies, they should consider a third currency for invoicing {TRUE}" "[TRUE-FALSE] Globalization offers some protection from currency fluctuations {TRUE}" "[TRUE-FALSE] The local (overseas) manufacturing market-entry strategy does not reduce currency risk {FALSE}"