BAFM 3B Prelim

Which term has nothing to do with Finance?

• Management

• Creation

• Financial Vehicle

• Investment

Global Finance refers to___________?

• Financial Investment and Money

• Financial Activities and Instrument

• Financial Markets and Activities

• Financial Management and Markets

If affects the relative prices by accessing one’s country’s goods.

• International Travel and Investment

• Currency Exchange Rate

• Cross Boarder Transaction

• Flow of Capital

It shows the circular flow of income.

• International Trade and Investment

• Currency Exchange Rate

• Cross Boarder Transaction

• Flow of Capital

It is use to access global market.

• International Trade and Investment

• Currency Exchange Rate

• Cross Boarder Transaction

• Flow of Capital

It is use as an advantage if the current exchange rate is volatile for changes.

• Mundell–Fleming model

• International Fisher Effect

• Optimum currency area theory

• Interest Rate Parity

It is use to predict if the amount of expenditure is within the advantage and disadvantage of the country.

• Mundell–Fleming model

• Purchasing Power Parity

• Optimum currency area theory

• Interest Rate Parity

Intercontinental Trade and Income help boost economic development and current shortage.  

• True

• False

You can use local currency in purchasing in global market through cross-border transaction

• False

• True

Financial uncertainty can be minimized through Global Finance.

• False

• True