1. The Interest Rate Equalization Tax: a. Limited the flow of funds from US banks to foreign borrowers for spite b. Placed restrictions on funds flowing from US-based MNCs to their foreign affiliates c. Increased the Reserve Requirements on US banks interested in tax equalization d. Was intended to discourage the purchase of foreign securities by US investors e. None of the Above 2. In imperfectly integrated financial markets: A. Real risk-adjusted returns are always higher than those of integrated markets B. There are no real risk-adjusted returns, since markets are not fully integrated. C. The real risk-adjusted returns are always lower than those of integrated markets D. Real risk-adjusted returns expected to prevail in each country and currency should be equal E. None of the above 3. The (original) LIBOR can be described as the: a. Interest rate in London based on the British pound to euro exchange rate b. London Interest Official Rate based on the rate the Bank of England charges commercial banks c. Benchmark interest rate used by the International Monetary Fund d. Benchmark interest rate used in interbank borrowing by major London banks 4. A bond denominated in U.S. dollars and issued by a French company in the US is classified as: A. Pepe Le Pew Bond B. Eurobond C. Domestic Bond D. Foreign Bond E. None of the above 5. A country has adopted a worldwide tax system if: A. Individuals or businesses in similar situations make equal payments worldwide B. It taxes only income generated within the country 1 C. Its tax system has no impact on its MNC worldwide decision making D. Taxes income of its MNCs regardless of where income is generated E. None of the Above