20. Which of (e) through (d) is inconsistent with the text's summary of empirical studies of country and industry factors in international stock returns? a. Cross-country correlations typically are lower than cross-industry correlations b. Diversifying across countries usually brings greater diversification benefits than c. Although capital markets are becoming increasing integrated, correlations between d. There are periods where high volatility in selected industries (e g, the IT bubble of the diversifying across industries. national stock markets are not necessarily increasing late 1990s) reduces industry correlations, and thereby increases the importance of industry diversification. e. Each of the above is consistent with recent empirical studies. 21. Shareholders' exposure to currency risk is equal to a. assets less liabillties b. credits less debits c. net monetary assets plus real assets d. the sum of transaction exposure and operating exposure e none of the above 22. The globally competitive multinational corporation typically has_ a. both revenues and expenses that are determined globally b. both revenues and expenses that are determined locally c. revenues that determined locally and expenses that are determined globally d. revenues that determined globally and expenses that are determined locally e. none of the above 23. Over-the-counter currency options traded by commercial and investment banks a. are customized to fit the needs of the banks customens b. have expiration dates and contract amounts that are specified by the banks C. have standardized commissions d. typically glve the short side of the contract to the customer e. none of the above 24. The modern corporate treasury typicaly performs each of the following functions EXCEPT a. arranging financing for domestic and international trade b. consolidating and managing the financial flows of the firm c. identifying, measuring, and managing the firm's risk exposures d. managing the risks of domestic and international financial transactions e. setting sales targets and monitoring progress toward these targets 25. With payment through the seller delivers goods directly to the buyer and then bills the bu for the goods under agreed-upon payment terms. a. a packing list b. cash in advance c. draft d. letter of credit open account