9) Assume the Japanese Yen, recently quoted at 135.6150 /$, suddenly changes to 129.870/$.

(a) Yen has strengthened

(b) Yen has weakened

(c) Yen has depreciated

(d) Dollar has strengthened

(e) None of the above

10) Given exchange rate between Euro and US dollar as 0.7067/$, which is the US dollar value of Euro? If you are a European is the quoted price of 0.7067/$ a direct or indirect quote?

(a) 0.7067/$;direct

(b) 0.7067/$; indirect

(c) $1.4150/;direct

(d) $1.4150/; indirect

(e) none of the above

12) The Shareholder Wealth Maximization Model

(a) combines the interests and inputs of shareholders, creditors, management, employees, and society.

(b) clearly places shareholders as the primary stakeholder.

(c)is being usurped by the Corporate Wealth Maximization Model as those types of MNEs dominate their global industry segments.

(d) is the dominant form of corporate management in the European-Japanese governance system.

(e) all of the above.

(13) When exchange rates change,

a) this can alter the operating cash flow of a domestic firm.

b) this can alter the competitive position of a domestic firm.

c)this can alter the home currency values of a multinational firm's assets and liabilities.

d) all of the options

e) none of the options

15)Under a fixed exchange rate regime, the government of the country is officially responsible for

(a) intervention in the foreign exchange markets using gold and reserves.

(b) setting the fixed/parity exchange rate.

(c) maintaining the fixed/parity exchange rate.

(d) All of the above.

(e) None of the above.

16) The balance of payments as applied to a course in international finance may be defined as

(a) the measurement of all international economic transactions between the residents of a country and foreign residents.

(b) the amount still owed by governments to the International Monetary Fund.

(c) the amount still owed by an exporting firm after making an initial down payment.

(d) the amount of a country's merchandise trade deficit of surplus.

(e) none of the above.

23)What following statements are correct?

I. Transaction exposure and operating exposure exist because of expected changes in future cash flows.

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