Quiz 1

Quiz 1 - summarized, in alphabetic order, as follows: (i)-...

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Quiz 1 1. What major dimension sets apart international finance from domestic finance? A. Foreign exchange and political risks B. Market imperfections C. Expanded opportunity set D. All of the above 2. An MNC may gain from its global presence by A. spreading R&D expenditures and advertising costs over their global sales. B. pooling global purchasing power over suppliers. C. utilizing their technological and managerial know-how globally with minimum additional costs. D. all of the above are potential gains 3. The international monetary system can be defined as the institutional framework within which A. international payments are made. B. movement of capital is accommodated. C. exchange rates among currencies are determined. D. all of the above 4. The international monetary system went through several distinct stages of evolution. These stages are
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Unformatted text preview: summarized, in alphabetic order, as follows: (i)- Bimetallism (ii)- Bretton Woods system (iii)- Classical gold standard (iv)- Flexible exchange rate regime (v)- Interwar period The chronological order that they actually occurred is: A. (iii), (i), (iv), (ii), and (v) B. (i), (iii), (v), (ii), and (iv) C. (vi), (i), (iii), (ii), and (v) D. (v), (ii), (i), (iii), and (iv) 5. Gresham's Law states that A. bad money drives good money out of circulation. B. good money drives bad money out of circulation. C. if a country bases its currency on both gold and silver, at an official exchange rate, it will be the more valuable of the two metals that circulate. D. none of the above....
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This note was uploaded on 02/27/2012 for the course FIN 4604 taught by Professor Samiquemarch during the Spring '11 term at FIU.

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