WorksheetsGlobal Finance
Total questions: 10
Worksheet time: 5mins
_is a loan instrument which promises to pay a fixed sum on a fixed date, and to pay interest to the lender
Securities
Bond
Derivatives
Shares
Which of the following is a Bretton Woods institution?
The International Monetary Fund (IMF)
The World Trade Organization (WTO)
The International Labor Organization (ILO)
The Securities and Exchange Commission (SEC)
The Washington consensus includes all but which one of the following?
Market reforms
Liberalizing FDI
Nationalizing key industries
Deregulation
A country's exporters favour all but which one of the following?
A weak domestic currency
A strong domestic currency
A stable currency market
A well regulated currency market
Lessons from the Asian financial crisis of 1997-8 included all but which one of the following?
Global capital flows are invariably beneficial in developing economies
Financial contagion can spread from one country to another
Financial crisis can spread to the entire economy
IMF conditions requiring market reforms can cause more economic hardship
Hedge funds are criticized for which one of the following reasons?
Their activities can annoy corporate decision makers
Their speculative activities can distort markets
They make lots of money
They attract people who like to gamble
Risks arising in derivatives trading include all but which one of the following?
The value of securities is hard to assess
Much of the trading is unregulated
There are potentially huge profits to be made in such trading
Speculative investors are active in trading
Why has globalization increased financial risks?
Global production now involves many countries
Global supply chains need increased sources of capital
Global companies seek differing locations as part of their financial strategy
Global capital flows can be highly volatile
Swelling sovereign debt is a worry in all but which one of the following circumstances?
When tax revenues fall
When economic growth slows
When public spending is falling
When public spending is spiraling out of control
Which of the following is an advantage of the pegged exchange rate?
It protects the country against economic downturn
It attracts foreign investors
It leads to financial stability
It deters speculators on the country's currency
