If inflation is expected to be higher in the Japan than in South Korea, then the Korean won is forecasted to depreciate against the Yen.

Select one:

a. False

b. Not clear

c. Partly true

d. True

2. A Malaysian importer of a Korean product should sell Korean Won forward to avoid the risk of an appreciation of the yen.

Select one:

a. Not clear

b. True

c. Partly true

d. False

3. Which one of these is not considered to be a security?

Select one:

a. A mortgage loan issued and held by a bank

b. A convertible bond issued to the public

c. Shares of AirAsia stock

d. A bond traded in the financial market

4. Firms can alter their capital structure by:

Select one:

a. not accepting any new capital budgeting projects.

b. issuing stock to repay debt.

c. investing in intangible assets.

d. becoming a limited liability company.

5. The primary goal of any company should be to maximize current period profits.

Select one:

a. Not clear

b. True

c. False

d. Partly true

6. The number of GBP that can be purchased with one Malaysian Ringgit is referred to as an indirect quote.

Select one:

a. False

b. True

c. Partly true

d. Not clear

7. The separation of ownership and management is one distinctive feature of corporations and sole proprietors.

Select one:

a. Partly true

b. False

c. True

d. Not clear

8. Which one of these is a capital budgeting decision?

Select one:

a. Deciding whether or not the firm should go public

b. Deciding if the firm should repurchase some of its outstanding shares

c. Deciding between issuing stock or debt securities

d. Deciding whether to buy a new machine or repair the old machine

9. Which one of these statements is correct?

Select one:

a. Corporate governance is irrelevant.

b. A dollar received next year has the same value as a dollar received today.

c. Risky cash flows are more valuable than certain cash flows.

d. Smart investment decisions create more value than smart financing decisions.

10. Which of the firm's financial managers is most likely to be involved with obtaining financing for the firm?

Select one:

a. Treasurer

b. Board of directors

c. Controller

d. Chief Operating Officer

11. The international Fisher effect states that nominal interest rates should be equal in all countries.

Select one:

a. Not clear

b. True

c. Partly true

d. False

12. Making good investment and financing decisions is the chief task of the financial manager.

Select one:

a. Not clear

b. True

c. False

d. Partly true

13. Genting's issuance of a $1.0 billion bond is a financing decision.

Select one:

a. Not clear

b. False

c. True

d. Partly true

14. A successful investment is one that increases the value of the firm.

Select one:

a. False

b. Partly true

c. True

d. Not clear