Question 1

The 'J curve' effect describes:

Accepted Answer

A)  the continuous long-term inverse relationship between a country's current account balance and the country's growth in gross national product. 
B)  the short-run tendency for a country's balance of trade to deteriorate even while its currency is depreciating. 
C)  the tendency for exporters to initially reduce the price of goods when their own currency appreciates. 
D)  the reaction of a country's currency to initially depreciate after the country's inflation rate declines. 
A)  the continuous long-term inverse relationship between a country's current account balance and the country's growth in gross national product. 
B)  the short-run tendency for a country's balance of trade to deteriorate even while its currency is depreciating. 
C)  the tendency for exporters to initially reduce the price of goods when their own currency appreciates. 
D)  the reaction of a country's currency to initially depreciate after the country's inflation rate declines.

Question 2

The demand for UK exports tends to increase when:

Accepted Answer

A)  economic growth in foreign countries decreases. 
B)  the currencies of foreign countries strengthen against the pound. 
C)  UK inflation rises. 
D)  none of the above 
A)  economic growth in foreign countries decreases. 
B)  the currencies of foreign countries strengthen against the pound. 
C)  UK inflation rises. 
D)  none of the above

Question 3

A weakening of the US dollar with respect to the British pound would likely reduce the US exports to Britain and increase US imports from Britain.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following would likely have the least direct influence on a country's current account?

Accepted Answer

A)  Inflation 
B)  National income 
C)  Exchange rates 
D)  Tariffs 
E)  A tax on income earned from foreign stocks 
A)  Inflation 
B)  National income 
C)  Exchange rates 
D)  Tariffs 
E)  A tax on income earned from foreign stocks

Question 5

Which of the following is not the main component of a balance of payments statement?

Accepted Answer

A)  Current account 
B)  Capital account 
C)  Financial account 
D)  Profit and loss account 
A)  Current account 
B)  Capital account 
C)  Financial account 
D)  Profit and loss account

Question 6

A product cycle is the process by which a firm provides a specialized sales or service strategy, support assistance, and possibly an initial investment in the franchise in exchange for periodic fees.

Accepted Answer

A) True 
 B)False

The 'J curve' effect describes:

The demand for UK exports tends to increase when:

A weakening of the US dollar with respect to the British pound would likely reduce the US exports to Britain and increase US imports from Britain.

Which of the following would likely have the least direct influence on a country's current account?

Which of the following is not the main component of a balance of payments statement?

A product cycle is the process by which a firm provides a specialized sales or service strategy, support assistance, and possibly an initial investment in the franchise in exchange for periodic fees.

Multinational Financial Management: an Overview

International Financial Markets

Exchange Rate Changes

Currency Derivatives

Exchange Rate History and the Role of Governments

International Arbitrage and Interest Rate Parity

Relationships Among Inflation, Interest Rates and Exchange Rates

Forecasting Exchange Rates

Measuring Exposure to Exchange Rate Fluctuations

Managing Transaction Exposure

Managing Economic Exposure and Translation Exposure

Foreign Direct Investment

Country Risk Analysis

Long-Term Financing

Ethics

Financing International Trade

Short-Term Financing

International Cash Management

Filters

Exam 2: International Flow of Funds

The 'J curve' effect describes:

The demand for UK exports tends to increase when:

A weakening of the US dollar with respect to the British pound would likely reduce the US exports to Britain and increase US imports from Britain.

Which of the following would likely have the least direct influence on a country's current account?

Which of the following is not the main component of a balance of payments statement?

A product cycle is the process by which a firm provides a specialized sales or service strategy, support assistance, and possibly an initial investment in the franchise in exchange for periodic fees.

Multinational Financial Management: an Overview

International Financial Markets

Exchange Rate Changes

Currency Derivatives

Exchange Rate History and the Role of Governments

International Arbitrage and Interest Rate Parity

Relationships Among Inflation, Interest Rates and Exchange Rates

Forecasting Exchange Rates

Measuring Exposure to Exchange Rate Fluctuations

Managing Transaction Exposure

Managing Economic Exposure and Translation Exposure

Foreign Direct Investment

Country Risk Analysis

Long-Term Financing

Ethics

Financing International Trade

Short-Term Financing

International Cash Management

Filters