国际金融英文chapter 1--03版(8)

作业

4) Typically, a firm in its domestic stage of globalization has all financial transactions in its domestic currency.

Answer: TRUE

Diff: 1

Topic: 1.5 The Globalization Process

Skill: Conceptual

5) A firm in the International Trade Phase of Globalization

A) makes all foreign payments in foreign currency units and all foreign receipts in domestic currency units.

B) receives all foreign receipts in foreign currency units and makes all foreign payments in domestic currency units.

C) bears direct foreign exchange risk.

D) none of the above.

Answer: C

Diff: 1

Topic: 1.5 The Globalization Process

Skill: Conceptual

6) The exposure to foreign exchange risk known as Translation Exposure may be defined as

A) changes in reported owners' equity in consolidated financial statements caused by a change in exchange rates.

B) the impact of settling outstanding obligations entered into before change in exchange rates but to be settled after change in exchange rates.

C) the change in expected future cash flows arising from an unexpected change in exchange rates.

D) all of the above.

Answer: A

Diff: 1

Topic: 1.5 The Globalization Process

Skill: Conceptual

7) The twin agency problems limiting financial globalization are caused by these two groups acting in their own self-interests rather than the interests of the firm.

A) rulers of sovereign states and unsavory customs officials

B) corporate insiders and attorneys

C) corporate insiders and rulers of sovereign states

D) attorneys and unsavory customs officials

Answer: C

Diff: 1

Topic: 1.5 The Globalization Process

Skill: Recognition

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