Test bank International Finance MCQ wordChap 10Word下载.docx

Test bank International Finance MCQ wordChap 10Word下载.docx

《Test bank International Finance MCQ wordChap 10Word下载.docx》由会员分享，可在线阅读，更多相关《Test bank International Finance MCQ wordChap 10Word下载.docx（45页珍藏版）》请在冰豆网上搜索。

D

Topic:

OperatingExposure

Skill:

Recognition

2）

Whattypeofinternationalriskexposuremeasuresthechangeinpresentvalueofafirmresultingfromchangesinfutureoperatingcashflowscausedbyanyunexpectedchangeinexchangerates?

transactionexposure

accountingexposure

operatingexposure

translationexposure

C

3）

Thegoalofoperatingexposureanalysisistoidentifystrategicoperatingtechniquesthefirmmightadopttoenhancevalueinthefaceofunanticipatedexchangeratechanges.

TRUE

Conceptual

4）

________cashflowsarisefromintracompanyandintercompanyreceivablesandpaymentswhile________cashflowsarepaymentsfortheuseofloansandequity.

Financing;

operating

Operating;

financing

accounting

Accounting;

B

OperatingandFinancialCashFlows

5）

Operatingcashflowsmayoccurindifferentcurrenciesandatdifferenttimes,butfinancingcashflowsmayoccuronlyinasinglecurrency.

FALSE

Recognition

6）

WhichofthefollowingisNOTanexampleofafinancialcashflow?

parentinvestedequitycapital

interestonintrafirmlending

paymentforgoodsandservices

intrafirmprincipalpayments

FinancialCashFlows

7）

WhichofthefollowingisNOTanexampleofanoperatingcashflow?

managementfeesanddistributedoverhead

royaltiesandlicensefees

rentandleasepayments

dividendpaidtoparentcompany

OperatingCashFlows

8）

________exposureisfarmoreimportantforthelong-runhealthofabusinessthanchangescausedby________or________exposure.

translation;

transaction

Transaction;

operating;

translation

Translation;

A

Transaction;

andTranslationExposure

9）

Expectedchangesinforeignexchangeratesshouldalreadybefactoredintoanticipatedoperatingresultsbymanagementandinvestors.

Expectations

10）

Underconditionsofequilibrium,managementwoulduse________exchangerateasanunbiasedpredictoroffuturespotrateswhenpreparingoperatingbudgets.

thecurrentspot

theforwardrate

theblackmarket

noneoftheabove

ForwardRate

Conceptual

11）

SimpsonSignCompanybasedinFrostbiteFalls,Minnesotahasa6-monthC$100,000contracttocompletesignworkinWinnipeg,Manitoba,Canada.Thecurrentspotrateis$1.02/C$andtheforwardrateis$1.01/C$.Underconditionsofequilibrium,managementwouldusetoday________whenpreparingoperatingbudgets.

$102,000

$101,000

$100,000

Noneoftheabove

Analytical

12）

Inequilibrium,expectedcashflowtoamortizeinternationaldebtobligationsshouldreflectthe________.

currentspotrate

thespotratewhentheloanwascontracted

theinternationalFishereffect

ExchangeRateEquilibrium

13）

Fromaninvestor'

sperspective,iftheforeignexchangemarketisefficient,informationaboutexpectedchangesinexchangeratesshouldbewidelyknownandthusreflectedinafirm'

smarketvalue.Only________inexchangeratesoran________foreignexchangemarket,shouldcausemarketvaluetochange.

expectedchanges;

efficient

unexpectedchanges;

inefficient

14）

WhichofthefollowingisNOTanexampleofdiversifyingoperations?

diversifyingsales

diversifyinglocationofoperations

raisingfundsinmorethanonecountry

sourcingrawmaterialsinmorethanonecountry

ForeignExchangeDiversification

15）

WhichofthefollowingisNOTanexampleofdiversificationinfinancing?

raisingfundsinmorethanonemarket

Alloftheabovequalify.

16）

Managementmustbeabletopredictdisequilibriaininternationalmarketstotakeadvantageofdiversificationstrategies.

17）

Whendisequilibriaininternationalmarketsoccur,managementcantakeadvantageby

doingnothingiftheyarealreadydiversifiedandabletorealizebeneficialportfolioeffects.

recognizingdisequilibriafasterthanpurelydomesticcompetitors.

shiftingoperationaloffinancingactivitiestotakeadvantageofthedisequilibria.

alloftheabove.

18）

PurelydomesticfirmswillbeatadisadvantagetoMNEsintheeventofmarketdisequilibriabecause

domesticfirmslackcomparativedatafromitsownsources.

internationalfirmsarealreadysolarge.

allofthedomesticfirm'

srawmaterialsareimported.

Noneoftheabove.Domesticfirmsarenotatadisadvantage.

19）

WhichofthefollowingisprobablyNOTanadvantageofforeignexchangeriskmanagement?

thereductionofthevariabilityofcashflowsduetodomesticbusinesscycles

increasedavailabilityofcapital

reducedcostofcapital

Alloftheabovearepotentialadvantagesofforeignexchangeriskmanagement.

20）

WhichofthefollowingisNOTanexampleofaformofpoliticalriskthatmightbeavoidedorreducedbyforeignexchangeriskmanagement?

expropriationofassets

destructionofrawmaterialsthroughnaturaldisaster

war

unfavorablelegalchanges

PoliticalRisk

21）

WhichofthefollowingisNOTidentifiedbyyourauthorsasaproactivemanagementtechniquetoreduceexposuretoforeignexchangerisk?

matchingcurrencycashflows

currencyswaps

remainingapurelydomesticfirm

parallelloans

ManagementofForeignExchangeRisk

22）

Whichoneofthefollowingmanagementtechniquesislikelytobestoffsettheriskoflong-runexposuretoreceivablesdenominatedinaparticularforeigncurrency?

borrowmoneyintheforeigncurrencyinquestion

lendmoneyintheforeigncurrencyinquestion

increasesalestothatcountry

increasesalesinthiscountry

23）

Whichoneofthefollowingmanagementtechniquesislikelytobestoffsettheriskoflong-runexposuretopayablesdenominatedinaparticularforeigncurrency?

relyontheFederalReserveBoardtoenactmonetarypolicyfavorabletoyourexposurerisk

24）

Theparticularstrategyoftryingtooffsetstableinflowsofcashfromonecountrywithoutflowsofcashinthesamecurrencyisknownas________.

hedging

diversification

matching

balancing

25）

WhichofthefollowingisNOTanacceptablehedgingtechniquetoreduceriskcausedbyarelativelypredictablelong-termforeigncurrencyinflowofJapaneseyen?

ImportrawmaterialsfromJapandenominatedinyentosubstitutefordomesticsuppliers.

Paysuppliersfromothercountriesinyen.

ImportrawmaterialsfromJapandenominatedindollars.

Acquiredebtdenominatedinyen.

26）

AnMNEhasacontractforarelativelypredictablelong-terminflowofJapaneseyenthatthefirmchoosestohedgebyseekingoutpotentialsuppliersinJapan.Thishedgingstrategyisreferredtoas________.

anaturalhedge

currency-switching

NaturalHedge

27）

AnMNEhasacontractforarelativelypredictablelong-terminflowofJapaneseyenthatthefirmchoosestohedgebypayingforimportsfromCanadainJapaneseyen.Thishedgingstrateg