Question 1

Exchange rate forecasting is

Accepted Answer

A)  important because exchange rates influence many aspects of business. 
B)  important because markets depend on solid information and not estimates. 
C)  unimportant because exchange rate forecasting does not have a theoretical model. 
D)  unimportant because exchange rate movements do not impact international transactions. 
A)  important because exchange rates influence many aspects of business. 
B)  important because markets depend on solid information and not estimates. 
C)  unimportant because exchange rate forecasting does not have a theoretical model. 
D)  unimportant because exchange rate movements do not impact international transactions.

Question 2

When the law of one price is applied to interest rates,it suggests that

Accepted Answer

A)  interest rates do not differ much across national borders. 
B)  inflation is not affected by interest rates. 
C)  inflation and interest rates do not follow the law of one price. 
D)  varying interest rates take into account anticipated differences in inflation rates. 
A)  interest rates do not differ much across national borders. 
B)  inflation is not affected by interest rates. 
C)  inflation and interest rates do not follow the law of one price. 
D)  varying interest rates take into account anticipated differences in inflation rates.

Question 3

The price of gold since about 1200 AD has been

Accepted Answer

A)  trending downward. 
B)  flat, keeping its value. 
C)  wildly fluctuating. 
D)  trending upward. 
A)  trending downward. 
B)  flat, keeping its value. 
C)  wildly fluctuating. 
D)  trending upward.

Question 4

Three main types of taxation are withholding,income,and ___________.

Accepted Answer

Value Added Tax (VAT

Question 5

In spring 2013,_____________ trading averaged $5.3 trillion per day,with most of the trades in the dollar.

Accepted Answer

foreign ex

Question 6

Arbitrage functions to

Accepted Answer

A)  provide French markets access to other EU markets. 
B)  exploit price differences between markets, so as to profit with no risk. 
C)  create wealth through interest rate swaps. 
D)  create increased trading in commodity markets. 
A)  provide French markets access to other EU markets. 
B)  exploit price differences between markets, so as to profit with no risk. 
C)  create wealth through interest rate swaps. 
D)  create increased trading in commodity markets.

Question 7

In BOP accounting,a deficit in the current account is always accompanied by a surplus in the capital account.

Accepted Answer

A) True 
 B)False

Question 8

Foreign exchange markets are

Accepted Answer

A)  large, liquid, and not very competitive. 
B)  located in major trading capitals and have a virtual presence. 
C)  accessible only to finance specialists. 
D)  located in central banks. 
A)  large, liquid, and not very competitive. 
B)  located in major trading capitals and have a virtual presence. 
C)  accessible only to finance specialists. 
D)  located in central banks.

Question 9

The three main approaches to exchange rate forecasting are

Accepted Answer

A)  the efficient market approach, the fundamental approach, and the technical approach. 
B)  the efficient market approach, the random walk hypothesis, and the pragmatic approach. 
C)  the random walk hypothesis, the pragmatic approach, and the fundamental approach. 
D)  guesswork, estimation, and approximation. 
A)  the efficient market approach, the fundamental approach, and the technical approach. 
B)  the efficient market approach, the random walk hypothesis, and the pragmatic approach. 
C)  the random walk hypothesis, the pragmatic approach, and the fundamental approach. 
D)  guesswork, estimation, and approximation.

Question 10

The U.S.current account deficit can be explained partially by

Accepted Answer

A)  citizens of other nations wanting to hold dollars, and invest in the U.S. 
B)  citizens of other nations wanting to avoid the dollar. 
C)  U.S. citizens exporting more than they are importing. 
D)  American foreign policy in the Middle East. 
A)  citizens of other nations wanting to hold dollars, and invest in the U.S. 
B)  citizens of other nations wanting to avoid the dollar. 
C)  U.S. citizens exporting more than they are importing. 
D)  American foreign policy in the Middle East.

Question 11

The balance of payments account is divided into the following three major subaccounts:

Accepted Answer

A)  trade, capital, and debt. 
B)  cash flow, assets, and reserves. 
C)  services, cash flow, and debt. 
D)  current, capital, and reserves. 
A)  trade, capital, and debt. 
B)  cash flow, assets, and reserves. 
C)  services, cash flow, and debt. 
D)  current, capital, and reserves.

Question 12

With increasing inflation,borrowing becomes

Accepted Answer

A)  more attractive because repayment can be made with cheaper money. 
B)  less attractive because repayment is made with dearer money. 
C)  impossible because money has lost its value. 
D)  a mute issue because of liquidity issues. 
A)  more attractive because repayment can be made with cheaper money. 
B)  less attractive because repayment is made with dearer money. 
C)  impossible because money has lost its value. 
D)  a mute issue because of liquidity issues.

Question 13

International reserve accounts are

Accepted Answer

A)  a way to control imports. 
B)  ready for any international negotiation. 
C)  prohibited by the Jamaica Accords. 
D)  a way for nations to back their liabilities, to ensure their liquidity. 
A)  a way to control imports. 
B)  ready for any international negotiation. 
C)  prohibited by the Jamaica Accords. 
D)  a way for nations to back their liabilities, to ensure their liquidity.

Question 14

____________ policies are those that control the amount of money in circulation.

Accepted Answer

The answer of ____________ policies are those that control the...

Question 15

The ______________ describes that when a national currency becomes a reserve currency,over time,people lose confidence in it due to inevitable domestic deficits,and it loses value.

Accepted Answer

The answer of The ______________ describes that when a national...

Question 16

A spot exchange rate is the

Accepted Answer

A)  rate for exchange within two business days. 
B)  best rate in the market for exchange within 10 days. 
C)  rate for preferred exchanges among central bankers. 
D)  rate established by the BIS. 
A)  rate for exchange within two business days. 
B)  best rate in the market for exchange within 10 days. 
C)  rate for preferred exchanges among central bankers. 
D)  rate established by the BIS.

Question 17

Special drawing rights are

Accepted Answer

A)  a virtual currency and international reserve asset. 
B)  a virtual currency that competes with Bitcoin. 
C)  accounting journal entries to estimate goodwill. 
D)  specially delegated revenues, used for BOP balancing. 
A)  a virtual currency and international reserve asset. 
B)  a virtual currency that competes with Bitcoin. 
C)  accounting journal entries to estimate goodwill. 
D)  specially delegated revenues, used for BOP balancing.

Question 18

A currency that is used for international trade is known as a _________ currency.

Accepted Answer

The answer of A currency that is used for international...

Question 19

Financial forces such as inflation and taxation are considered uncontrollable because

Accepted Answer

A)  there is nothing a manager can do to adjust to them, so the recommended approach is to ignore them. 
B)  they are external forces beyond the influence of the firm, around which a manager can manage. 
C)  they are external to the firm and their influence is to be avoided. 
D)  they are unpredictable. 
A)  there is nothing a manager can do to adjust to them, so the recommended approach is to ignore them. 
B)  they are external forces beyond the influence of the firm, around which a manager can manage. 
C)  they are external to the firm and their influence is to be avoided. 
D)  they are unpredictable.

Question 20

Most major currencies are

Accepted Answer

A)  allowed by their central banks to float freely. 
B)  managed against either the dollar or the euro. 
C)  pegged to the dollar. 
D)  coordinated by their central bankers in collaboration. 
A)  allowed by their central banks to float freely. 
B)  managed against either the dollar or the euro. 
C)  pegged to the dollar. 
D)  coordinated by their central bankers in collaboration.

Exchange rate forecasting is

When the law of one price is applied to interest rates,it suggests that

The price of gold since about 1200 AD has been

Three main types of taxation are withholding,income,and ___________.

In spring 2013,_____________ trading averaged $5.3 trillion per day,with most of the trades in the dollar.

Arbitrage functions to

In BOP accounting,a deficit in the current account is always accompanied by a surplus in the capital account.

Foreign exchange markets are

The three main approaches to exchange rate forecasting are

The U.S.current account deficit can be explained partially by

The balance of payments account is divided into the following three major subaccounts:

With increasing inflation,borrowing becomes

International reserve accounts are

____________ policies are those that control the amount of money in circulation.

The ______________ describes that when a national currency becomes a reserve currency,over time,people lose confidence in it due to inevitable domestic deficits,and it loses value.

A spot exchange rate is the

Special drawing rights are

A currency that is used for international trade is known as a _________ currency.

Financial forces such as inflation and taxation are considered uncontrollable because

Most major currencies are

The Challenging Context of International Business

International Trade and Investment

Sociocultural Forces

Sustainability and Natural Resources

Political Forces That Affect Global Trade

Intellectual Property Rights and Other Legal Forces

Economic and Socioeconomic Forces

International Competitive Strategy

Organizational Design and Control

Global Leadership Issues and Practices

International Markets: Assessment and Entry Modes

Marketing Internationally

Managing Human Resources in an International Context

International Accounting and Financial Management

Appendix A: International Institutions From a Business Perspective

Appendix B: Export and Import Practices

Appendix C: Global Operations and Supply Chain Management

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Exam 8: The International Monetary System and Financial Forces

Exchange rate forecasting is

When the law of one price is applied to interest rates,it suggests that

The price of gold since about 1200 AD has been

Three main types of taxation are withholding,income,and ___________.

In spring 2013,_____________ trading averaged $5.3 trillion per day,with most of the trades in the dollar.

Arbitrage functions to

In BOP accounting,a deficit in the current account is always accompanied by a surplus in the capital account.

Foreign exchange markets are

The three main approaches to exchange rate forecasting are

The U.S.current account deficit can be explained partially by

The balance of payments account is divided into the following three major subaccounts:

With increasing inflation,borrowing becomes

International reserve accounts are

____________ policies are those that control the amount of money in circulation.

The ______________ describes that when a national currency becomes a reserve currency,over time,people lose confidence in it due to inevitable domestic deficits,and it loses value.

A spot exchange rate is the

Special drawing rights are

A currency that is used for international trade is known as a _________ currency.

Financial forces such as inflation and taxation are considered uncontrollable because

Most major currencies are

The Challenging Context of International Business

International Trade and Investment

Sociocultural Forces

Sustainability and Natural Resources

Political Forces That Affect Global Trade

Intellectual Property Rights and Other Legal Forces

Economic and Socioeconomic Forces

International Competitive Strategy

Organizational Design and Control

Global Leadership Issues and Practices

International Markets: Assessment and Entry Modes

Marketing Internationally

Managing Human Resources in an International Context

International Accounting and Financial Management

Appendix A: International Institutions From a Business Perspective

Appendix B: Export and Import Practices

Appendix C: Global Operations and Supply Chain Management

Filters