MC Test Bank - CH 11 Multiple Choice 1. Change in the value...

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Unformatted text preview: CH 11 Multiple Choice 1. Change in the value of future cash flows due to unexpected changes in exchange rates is called ____ to currency risk. a. economic exposure b. operating exposure c. transaction exposure d. translation exposure e. none of the above 2. Change in financial accounting statements arising from unexpected changes in currency values is called ____ to currency risk. a. economic exposure b. operating exposure c. transaction exposure d. translation exposure e. none of the above 3. Change in the value of contractual cash flows due to unexpected changes in currency values is called ____ to currency risk. a. economic exposure b. operating exposure c. transaction exposure d. translation exposure e. none of the above 4. Change in the value of noncontractual cash flows due to unexpected changes in currency values is called ____ to currency risk. a. economic exposure b. operating exposure c. transaction exposure d. translation exposure e. none of the above 5. Operating cash flows that are exposed to currency risk are affected primarily by ____. a. changes in domestic inflation b. changes in foreign inflation c. changes in nominal exchange rates d. changes in real exchange rates e. none of the above 6. Monetary cash flows that are exposed to currency risk are affected primarily by ____. a. changes in domestic unemployment b. changes in foreign unemployment c. changes in nominal exchange rates d. changes in real exchange rates e. none of the above 7. When goods markets are segmented from other markets, goods prices are determined ____. a. in foreign markets b. in the global market c. in the local market d. all of the above e. none of the above 8. The classic exporter has ____. a. both revenues and expenses that are determined globally b. both revenues and expenses that are determined locally c. revenues that are determined locally and expenses that are determined globally d. revenues that are determined globally and expenses that are determined locally e. none of the above 9. The classic importer has ____. a. both revenues and expenses that are determined globally b both revenues and expenses that are determined locally c revenues that are determined locally and expenses that are determined globally d revenues that are determined globally and expenses that are determined locally e none of the above 10. The globally competitive multinational corporation typically has ____. a. both revenues and expenses that are determined globally b. both revenues and expenses that are determined locally c. revenues that determined locally and expenses that are determined globally d. revenues that determined globally and expenses that are determined locally e. none of the above 11. The ____ is positively exposed to the real value of the domestic currency....
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This note was uploaded on 03/25/2012 for the course FINS 3616 taught by Professor Curry during the Three '10 term at University of New South Wales.

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MC Test Bank - CH 11 Multiple Choice 1. Change in the value...

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