Question $10(0\mathrm{.}5$ points$)$

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Which of the following is an example of interest arbitrage?

Question $10$ options:

selling U$.$S$.$ dollars for Swiss francs, then selling Swiss francs for British pounds, then selling British pounds for U$.$S$.$ dollars

an American investing in a London$-$based company

investigating different commercial banks to find the best exchange rate

investing in debt instruments in different currencies or different countries

Question $11(0\mathrm{.}5$ points$)$

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The long$-$term financing dimension of cash management$\_\_\_\_\_\_\_\_\_\_\_.$

Question $11$ options:

is unaffected by currency changes because everyone borrows in U$.$S$.$ dollars

deals with the selection, issuance, and management of long$-$term debt and equity

focuses on the analysis of investment opportunities

is independent of the capital structure of an MNE

Question $12(0\mathrm{.}5$ points$)$

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The Fed wants to counter downward pressure on the dollar, so it will most likely $\_\_\_\_\_\_\_\_\_\_\_.$

Question $12$ options:

sell dollars and buy foreign stocks

sell dollars for foreign currency

buy dollars with foreign currency

buy Treasury bills with dollars

Question $13(0\mathrm{.}5$ points$)$

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Which of the following is most likely a benefit for firms that participate in the global capital market?

Question $13$ options:

quick sale of stocks and bonds

large pool of financing sources

equally balanced capital structure

numerous investment opportunities

Question $14(0\mathrm{.}5$ points$)$

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MNEs most likely use offshore debt markets$\_\_\_\_\_\_\_\_\_\_\_.$

Question $14$ options:

to take advantage of their ability to access capital in different countries

because investors don't like to invest in companies that only raise capital in their home markets

since debt in foreign countries is always cheaper than in the home country market

to hide their cash from tax authorities

Question $15(0\mathrm{.}5$ points$)$

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The$\_\_\_\_\_\_\_$ is the most widely traded currency in the world.

Question $15$ options:

pound

euro

yen

U$.$S$.$ dollar

Question $16(0\mathrm{.}5$ points$)$

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The neoclassical structure implemented by Cisco primarily enables the firm to $\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Question $16$ options:

respond quickly to new opportunities

assign leaders to new products

clarify managers' duties

thoroughly assess new competitors Question $18(0\mathrm{.}5$ points$)$

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The CFO's function in a company focuses on$\_\_\_\_\_\_\_\_\_\_\_.$

Question $18$ options:

creating financial statements

handling accounting issues

improving distributor relationships

acquiring financial resources

Question $19(0\mathrm{.}5$ points$)$

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The international bond market is a major source of debt financing for which of the following?

Question $19$ options:

small firms

world governments

regional organizations

small businesses Question $21(0\mathrm{.}5$ points$)$ Saved Which of the following is NOT an advantage of ADRs to U$.$S$.$ shareholders? Question $21$ options: All of the above are advantages of ADRs. In the event of the death of the shareholder, the estate does not go through a foreign court. Transfer of ownership is done in the U$.$S$.$ in accordance with U$.$S$.$ laws Settlement for trading is generally faster in the United States. Question $22(0\mathrm{.}5$ points$)$ Saved In the spot market, the $\_\_\_\_\_\_\_\_\_$ is the difference between the bid and offer rates and is the trader's profit margin. Question $22$ options: spread bid offer cross rate Question $23(0\mathrm{.}5$ points$)$ Saved Which of the following begins with a company defining critical success factors and specifying objective targets and hard deadlines? Question $23$ options: coordination by plan coordination by standardization coordination by consensus coordination by intervention Question $24(0\mathrm{.}5$ points$)$ Saved Which of the following best describes the special drawing right? Question $24$ options: a contribution made by countries to join the IMF the official currency for international trade established by the World Bank an international reserve asset created to supplement members' existing reserve assets a substitute for the fixed value of gold as determined by currency rates Question $25(0\mathrm{.}5$ points$)$ Saved Which of the following is the LEAST likely reason that global firms are shifting away from formal organizational structures? Question $25$ options: advancements in communication systems demands of stockholders changes in managerial standards opportunities in new markets