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WorksheetsINTERNATIONAL FINANCE
Total questions: 10
Worksheet time: 5mins
Which is NOT the importance of international finance?
Determine exchange rate
Compare inflation rate
Invest in debt securities
Buy Insurance
How many driving forces of financial globalization?
4
2
5
3
The Mundell-Fleming model presumes:
Prices are changing, but the IS-LM model assumes fixed prices
Prices are fixed, whereas the IS-LM model assumes flexible prices
Prices are fixed, as in the IS-LM model
Prices are adjustable, as in the IS-LM model
The study of monetary interactions that occur between two or more countries is known as international finance
True
False
Economic benefits of a common currency are increase transaction costs, less uncertainty about exchange rates, elimination of large depreciations, reduced inflation level and variability and international currency
True
False
What are the elements of an international finance organization?
World Bank
International Monetary Fund (IMF)
National Bureau of Economic Research (NBER)
International Finance Corporation (IFC)
What is the important variable in long term financial management
Provides management of corporation’s financial flows
Planning of financing activities and development of global strategy of MNC
Aimed primarily at increasing profitability and market value of MNC
Accumulate a liquid funds
Knowledge of forwards, futures, options, and swap is required in domestic finance
True
False
All the following are changes in capital market except:
Cross-border financing has increased
The non-banking financial institutions are not competing with banks in national and international market
Bank have accessed a market beyond their traditional business
Banking systems have been under a process of disintermediation
Which are the following are not benefit of financial globalization?
Borrowers and investors get a better pricing on their financing
Corporation can finance the investments more reasonably
Risk of a credit crunch has been reduced to extremely low levels
Shortage of funds
