6-

Which of the following domestic financial instruments have NOT been modified for use in international financial management?

:
	currency options and futures
	letters of credit
	interest rate and currency swaps
	All of the above are domestic financial instruments that have also been modified for use in international financial markets.

7-

A firm in the International Trade Phase of Globalization:

:	bears direct foreign exchange risk.
	receives all foreign receipts in foreign currency units and makes all foreign payments in domestic currency units.
	makes all foreign payments in foreign currency units and all foreign receipts in domestic currency units.
	none of the above

8-

The modern eurocurrency market was born shortly after:

:
:	Korean War
	Bosnian War
	World War II
	World War I

9-

The theory that suggests specialization by country can increase worldwide production is:

Selected Answer:	[None Given]
Answers:	the theory of comparative advantage.
	the theory of working capital management.
	the theory of foreign direct investment.
	the international Fisher effect.

10-

________ investments are designed to promote and enhance the growth and profitability of the firm.

________ investments are designed to deny those same opportunities to the firm's competitors.

Selected Answer:	[None Given]
Answers:	Aggressive; Proactive
	Conservative; Aggressive
	Proactive; Defensive
	Defensive; Proactive

11-

The reference rate of interest in the eurocurrency market is the:

Selected Answer:	[None Given]
Answers:	London Interbank Offered Rate
	Prima rate
	Treasury rate
	Federal funds rate