19-) As a general statement, it is safe to say that businesses generally use the ________ for foreign currency option contracts, and individuals and financial institutions typically use the ________.

Select one:

a. government sponsored; private

b. private; government sponsored

c. over-the-counter; exchange markets

d. exchange markets; over-the-counter

20-) The study of how shareholders can motivate management to accept the prescriptions of the shareholder wealth maximization model is called:

Select one:

a. the SWM model.

b. the SCM model.

c. market efficiency.

d. agency theory.

21-) According to the Big Mac Index, the implied PPP exchange rate is Mexican peso 8.50/$1 but the actual exchange rate is peso 10.80/$1. Thus, at current exchange rates the peso appears to be ________ by ________.

Select one:

a. overvalued; approximately 21%

b. undervalued; approximately 21%

c. overvalued; approximately 27%

d. undervalued; approximately 27%