Question: QUESTION 30 A German firm is attempting to determine the euro/pound exchange rate and has the following exchange rate information: USD/pound = $1.5509/ and the

QUESTION 30

A German firm is attempting to determine the euro/pound exchange rate and has the following exchange rate information: USD/pound = $1.5509/ and the USD/euro rate = $1.2194/. Therefore, the pound/euro rate must be:

a.

0.7316/.

b.

1.2719/.

c.

1.2719/.

d.

0.7863/

A ________ is a securitized financial instrument that is sold to the market in tranches representing different levels of default risk.

a.

credit default swap (CDS)

b.

mortgaged backed security (MBS)

c.

collateralized debt obligation (CDO)

d.

guaranteed security asset (GSA)

A well-established, large, Indian-based MNE will probably be most adversely affected by which of the following elements of firm value?

a.

access to qualified labor pool

b.

an open marketplace

c.

access to unskilled labor

d.

access to capital

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