Multinational firms can minimize delays in receipt of payments by using

Select one:

a. multiple checking accounts in many banksb. eurobanksc. a netting centerd. local cash managers in each of their subsidiaries

In the recent past which one of the following would be the MOSTeffective security for a U.S. investor seeking the benefits of global diversification to add to his/her profile?

Select one:

a. A Canadian corporation's common stockb. A Japanese corporation's common stockc. An Indian corporation's common stockd. British government bonds

Over the last twenty years, which one of the following was the MOST favored by investors to globally diversify a strictly domestic portfolio?

Select one:

a. global high tech securitiesb. development bank bondsc. securities from emerging market economiesd. samurai bonds

Which one of the following is a significant advantage of international investing? You can invest in

Select one:

a. companies that are, on average, more profitble than similar U.S. firmsb. companies that have lower priceearnings ratios than in the U.S.c. companies with lower market-to-book value ratiosd. industries that don't exist in the United States

Which one of the following is not a function of a draft in making payments internationally?

Select one:

a. the possibility to sell it as an investment to investorsb. reduced banking feesc. access to the currency futures marketd. clear evidence of financial obligation

The spot and 30day forward rates for the Dutch guilder are $.3120 and $.3075, respectively. The guilder is said to be selling at a forward

Select one:

a. discount of 15.10%b. premium of 16.83%c. discount of 17.31%d. premium of 17.56%

One of the most basic difference(s) between currency forward and futures contracts isthat

Select one:

a. forward contracts are negotiated with an organized exchange whereas futures contracts are bought and sold from banksb. futures contracts have no daily limits on price fluctuations whereas forward contracts have a daily limit on price fluctuationsc. forward contracts have more credit risk than futures contractsd. futures contracts are individually tailored by size while forward contracts are all standardized amounts of currency

Which one of the following global currencies is an example of a pegged exchange rate?

Select one:

a. Eurosb. Chinese yuanc. Thai Bhatd. British pounds