1.Marketing to market is a practice found MOST often in the currency ___ market.

a. options

b. futures

c. forward

d. spot

2. Tax arbitrage

a. arises when subsidiary profits vary due to local regulations for the environment.

b. occurs when firms move funds to higher tax codes

c. arises because countries have different tax codes

d. occurs due to the incidence of capital flight

3. Which of the following would be the total dollar return on a foreign security NOT include?

a. interest income

b. capital gains

c. taxed

d. dividend income

4. On August 8, 2000, Zimbabwe changed the value of the Zim dollar from Z$38/US$ to Z$50/US$. By what percent has the Zim dollar devalued or revalued relative to the U.S. $?

a. depreciated by 31.5%

b. appreciated by 24%

c. depreciated by 24%

d. appreciated by 31.5%