InternationalFinancialManagement_5thEd_Eun_TestBank11

InternationalFinancialManagement_5thEd_Eun_TestBank11 - 11...

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Unformatted text preview: 11 Student: ___________________________________________________________________________ 1. International banks are different from domestic banks in what way(s)? A. International banks can arrange trade financing B. International banks can arrange for foreign exchange transactions. C. International banks can assist their clients in hedging exchange rate risk. D. All of the above 2. Major distinguishing features between domestic banks and international banks are: A. The types of deposits they accept. B. The types of loans and investments they make. C. Membership in loan syndicates. D. All of the above 3. Since international banks have the facilities to trade foreign exchange. A. They generally also make a market as a dealer in foreign exchange. B. They generally also make a market as a dealer in foreign exchange derivatives. C. They generally also trade foreign exchange products for their own account. D. None of the above 4. Banks that both perform traditional commercial banking functions and engage in investment banking activities are often called A. International service banks B. Investment banks C. Commercial banks D. Merchant banks 5. Merchant banks are different from traditional commercial banks in what way(s)? A. Merchant banks can engage in investment banking activities B. Merchant banks can arrange for foreign exchange transactions. C. Merchant banks can assist their clients in hedging exchange rate risk. D. All of the above 6. By far the most important international finance centers are: A. New York and London B. New York, London, and Tokyo C. New York, London, Tokyo, Paris, and Zurich D. New York, London, Tokyo, Paris, Zurich, and Frankfurt 7. Multinational banks are often not subject to the same regulations as domestic banks. A. There may be increased need to publish adequate financial information. B. There may be reduced need to publish adequate financial information C. There requirements to publish adequate financial information are the same. D. None of the above 8. A domestic bank that follows a multinational client abroad to preserve that banking relationship: A. Is playing the role of the desperate housewife in this relationship. B. Is pursuing a wholesale defensive strategy. C. Is pursuing a retail defensive strategy. D. None of the above 9. A domestic bank that becomes a multinational bank to prevent erosion by foreign banks of the traveler's checks, touring, and foreign business market: A. Is playing the role of the desperate housewife in this relationship. B. Is pursuing a wholesale defensive strategy. C. Is pursuing a retail defensive strategy. D. None of the above 10. Banking tends to be A. A low marginal cost industry B. A high marginal cost industry C. A constant average cost industry D. None of the above 11. A U.S.-based multinational bank A. Would not have to provide deposit insurance and meet reserve requirements on foreign currency deposits B. Would have to provide deposit insurance and meet reserve requirements on foreign currency depositsB....
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This note was uploaded on 07/28/2011 for the course FIN 308 taught by Professor Canarella during the Summer '11 term at University of Nevada, Las Vegas.

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