due date ( 11:15 am - 22/10/2020 )

course : internatinal finance

Test Content Question 1 0.5 Points Non-Anglo-American markets are dominated by the "one- vote-one-share" rule. A True B) False Question 2 0.5 Points Agency theory states that unsystematic risk can be eliminated through diversification. A True B) False Question 3 0.5 Points Patient Capitalism is characterized by short-term focus by both management and investors. A True B) False Question 4 1.5 Points Differentiate between the Current Account and financial account of the Balance of Payments Use the editor to format your answer Question 5 0.5 Points The stakeholder capitalism model assumes that only systematic risk "counts" or is a prime concern for management. A True B) False Question 6 1.5 Points State the characteristics of Stakeholder Capitalism Model and give one example of a country that follows this model. Use the editor to format your answer Question 7 1.5 Points What would the Central bank of a country like Saudi Arabia do in order to fix the value of its currency when its imports have risen while exports of oil have drastically reduced. What effect will the action to fix the currency value have on the Foreign Exchange reserves. Use the editor to format your answer Question 8 0.5 Points This was an era dominated by industrialized nation economies that were dependent on gold convertibility to maintain confidence in the system. A The Bretton Woods Era B) The Gold Standard C The Interwar Years D) The Floating Era Question 9 3 Points Assume that the Malaysian government officially floated the Malaysian Ringgit (MR). Within weeks, its value had moved from the pre-float fix of MR 3.777$ to MR 3.46/$. 1. Is this a devaluation, depreciation, revaluation or appreciation of the Malaysian Ringgit? (1.5 Mark) 2. By what percentage did its value change? (1.5 Mark) Add your answer Question 10 0.5 Points Since 2009 the IMF's exchange rate regime classification system uses a "de facto classification" methodology. Under this system, a country that has given up their own sovereignty over monetary policy is considered to have: (A) floating arrangements. B) hard pegs. C a residual agreement. D) soft pegs. Question 11 0.5 Points The stakeholder capitalism model (SCM) holds that total risk (operational and financial) is more important than just systematic risk. A True (B) False Question 12 2 Points The following exchange rates are available to you which includes Swiss Francs (SF) with dollar ($) and dollar($) with British pounds (). $0.65/SF $1.53/ Find the /SF cross rate Question 13 1.5 Points What did the countries meeting in Bretton woods agree to? specify in points? Use the editor to format your answer Question 14 0.5 Points A is any restriction that limits or alters the rate or direction of capital movement into or out of a country. (A capital control B) balance of trade deficit c) balance of trade surplus D capital budget Question 15 0.5 Points Which of the following is NOT a part of the Current Account of BOP? A net export/import of goods B) net portfolio investment C) balance of trade net export/import of services Question 16 1.5 Points Write the difference between Fixed and Floating exchange rate system based on the IMFs classification of the exchange rate regimes Use the editor to format your answer Question 17 0.5 Points The stakeholder capitalism model does not assume that equity markets are either efficient or inefficient. A True B) False Question 18 2 Points 923, one ounce of gold costs 385 French francs (FRF). If at the same time one ounce of gold could be purchased in Britain for GBP3.82, what was the exchange rate expressed in French franc and the British pound (FRF/GBP)? Add your answer Question 19 0.5 Points Ted Bundy has signed a contract to purchase $ 100,000 at SF2.5/ $ after one month later. What kind of transactions is this? A) Buying Dollars in Spot B) Selling Dollars a month forward C) Selling Swiss Franc a month Forward D) Buying Swiss Franc a month Forward