6. Compared to domestic firms, multinational firms and their financial managers face unique situations, including: A. Foreign Direct Investment B. Regulatory Complications C. Expanding Financial Horizons D. All of the Above E. A and C only 7. According to the authors, diversifying cash flows internationally may help MNEs reduce the variability of cash flows because: A. of a lack of competition among international firms. B. returns are not perfectly correlated between countries C. of an offset to cash flow variability caused by exchange rate variability. D. returns are perfectly correlated between countries. E. none of the above 8. A DISC (Domestic International Sales Corporation) is a: A. Company incorporated in a possession territory of the United States B. Company located in a foreign country that conducts domestic and international sales C. Dummy Company to which a U.S. export company sources its profits D. Dummy Company located in a Tax Haven E. Sales Company working with international dummies 9. A country has adopted a territorial tax system if: A. Individuals or businesses in similar situations make equal payments worldwide B. It taxes income of its MNCs regardless of where income is generated C. Its tax system has no impact on its MNC worldwide decision making D. Taxes income of its MNCs generated within the country E. None of the above 10. Regulation Q established: a. Reserve requirements for US banks b. New rules for charitable contributions c. The principal regulatory agencies in charge of quality banks d. The minimum margin required for stock purchases e. Interest rate ceilings on time deposits in US banks