chap022 - Chapter 022 International Corporate Finance...

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Chapter 022 International Corporate Finance Multiple Choice Questions 1. A security issued in the United States that represents shares of a foreign stock and allows that stock to be traded in the United States is called a(n): A . American Depository Receipt. b. Yankee bond. c. Yankee stock. d. Eurostock. e. foreign obligation trust certificate. SECTION: 22.1 TOPIC: AMERICAN DEPOSITORY RECEIPT TYPE: DEFINITIONS 2. The implicit exchange rate between two currencies when both are quoted in some third currency is called a(n): a. open exchange rate. B . cross-rate. c. backward rate. d. forward rate. e. interest rate. SECTION: 22.1 TOPIC: CROSS-RATE TYPE: DEFINITIONS 3. International bonds issued in multiple countries but denominated in a single currency are called: a. Treasury bonds. b. Bulldog bonds. C . Eurobonds. d. Yankee bonds. e. Samurai bonds. SECTION: 22.1 TOPIC: EUROBONDS TYPE: DEFINITIONS 22-1
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Chapter 022 International Corporate Finance 4. Money deposited in a financial center outside the country whose currency is involved is called: a. a foreign depository receipt. b. an international exchange certificate. c. Euroyen. D . Eurocurrency. e. Eurodollars. SECTION: 22.1 TOPIC: EUROCURRENCY TYPE: DEFINITIONS 5. International bonds issued in a single country and denominated in that country's currency are called: a. Treasury bonds. b. Eurobonds. c. gilts. d. Brady bonds. E . foreign bonds. SECTION: 22.1 TOPIC: FOREIGN BONDS TYPE: DEFINITIONS 6. Gilts are government securities issued by: A . Britain and Ireland. b. Japan. c. Germany. d. Australia and New Zealand. e. Italy. SECTION: 22.1 TOPIC: GILTS TYPE: DEFINITIONS 22-2
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Chapter 022 International Corporate Finance 7. The rate most international banks charge one another for overnight Eurodollar loans is called the: a. Eurodollar yield to maturity. B . London Interbank Offer Rate. c. Paris Opening Interest Rate. d. United States Treasury bill rate. e. international prime rate. SECTION: 22.1 TOPIC: LONDON INTERBANK OFFER RATE TYPE: DEFINITIONS 8. Agreements to exchange two securities or currencies are called: a. gilts. b. LIBORs. c. Samurais. d. Yankee agreements. E . swaps. SECTION: 22.1 TOPIC: SWAPS TYPE: DEFINITIONS 9. The foreign exchange market is where: a. one country's stocks are exchanged for another's. b. one country's bonds are exchanged for another's. C . one country's currency is traded for another's. d. international banks make loans to one another. e. international businesses finalize import/export relationships with one another. SECTION: 22.2 TOPIC: FOREIGN EXCHANGE MARKET TYPE: DEFINITIONS 22-3
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Chapter 022 International Corporate Finance 10. The price of one country's currency expressed in terms of another country's currency is called the: a. LIBOR rate. b. cross inflation rate. c. depository rate. D . exchange rate. e. foreign interest rate. SECTION: 22.2 TOPIC: EXCHANGE RATE TYPE: DEFINITIONS 11. An agreement to trade currencies based on the exchange rate today for settlement within two business days is called a(n) _____ trade. a. swap
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This note was uploaded on 03/23/2011 for the course ECON 202098 taught by Professor Sameer during the Spring '11 term at University of Jordan.

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chap022 - Chapter 022 International Corporate Finance...

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