1)

Licensing is the process by which a firm provides its technology (copyrights, patents, trademarks, or trade names) in exchange for fees or some other specified benefits.

Select one:

a. True

b. False

2)

Suppose the spot ask exchange rate is $1.90 = 1.00 and the spot bid exchange rate is $1.89 = 1.00. If you were to buy $10,000,000 worth of British pounds and then sell them five minutes later, how much of your $10,000,000 would be "eaten" by the bid-ask spread?

Select one:

a. $52,631.58

b. $100,000

c. $52,910.05

d. $1,000,000

3)

Suppose the spot quotes for the British pound and euro are $1.3981 and $1.2330, respectively. What is the indirect quote for the British pound?

Select one:

a. 1.1339

b. .0808

c. .0976

d. .8819

4)

Suppose the Swiss franc is selling for $1.62 and the buying rate for the British pound is $0.71. Then the value of Swiss franc in British pounds is

Select one:

a. 0.4383

b. CHF 2.2817

c. 2.2817

d. CHF 0.4383

5)

The is the difference between exports and imports.

Select one:

a. current account

b. balance of trade

c. balance of payments