1) Moral hazard may occur in decision making when a firm or individual takes on more risk, when it knows that someone else will "pick up the tab." True or False

2) Management must be able to access information that forecast disequilibria (unstable conditions) in international markets to take advantage of diversification strategies. True or False

3) Diversification is possibly the best technique for reducing the problems associated with international transactions.

True or False

4) Currency swaps ARE gaining increasing importance as financial derivative instruments. True or False