Question 3 Measuring economic exposure is based on the exposure coefficient which is computed as the covariance between the dollar value of the asset and the exchange rate divided by the variance of the exchange rate. Noye answered Paints out of 100 Select one: O True False question H Til Next page Previous page Question 4 The deposits of European companies in the banks located in the United States are called Eurodollars. Not you wered Points out of Select one: True False es geston Fine Predous page Time Next page Ductor 5 An open-end fund issues a limited number of shares offered by an investment company through an initial public balering Moty srcred Please suka 1.00 E B Selecione True Orale question Previous page Next page 1 COURSE JUDETL Pondi Question 6 Which of the following is considered the main goal of International Financial Management? Not yet answered Points out of 1.00 IP Fing Select one: O Company value maximization Promoting international investments and trade with poorer countries Shareholder wealth maximization O Maximization of a company's profits Question Previous page Next page PREVIOUS ACTIVITY Question 7 Which information is reflected in the official reserve account of the balance of payments? Not yet wered Points out of 1.30 mas Select one: Capital transfers and the cross border acquisition and disposal of natural resources and marketing assers Purchases and sales of dollars, foreign exchange. gold and special drawing rights. Export and import of goods and services Purchases and sales of stocks bonds, bank accounts, real estate and businesses question Previous page Next page Question 8 Which of the following approaches to forecasting exchange rates consists in analyzing the past behavior of exchange rates in order to recognize patterns and then projects them into the future to generate forecasts? Not yer answered Ponts out of 1.00 6 Question Select one: Efficient market approach Monetary approach Technical approach Fundamental approach 13 Finish me le Previous page Next page Question 9 Which of the following is an example of transaction exposure? Not yet answered Points out of 1,00 Hag question Select one: The U.K, exporters benefit from the British pound depreciation A Mexican company owns a factory in Texas worth $10 million. If the Mexico peso depreciates. MXN value of the US factory goes down o If the euro weakens against the dollarthe USD abilities of a French corporation's u.s. subsidiary will be higher than when expressed in euros OA Swiss company has 40% of its revenue nominated in CHF 40% in euro and 20% in dollars. Depreciation of euro and dollars will affect future CHF cash flows. Question 10 Which of the following measures can be used for managing the economic exposure? Not yet answered Doints out of P Pag Select one Using a currency swap contract O. Balance sheet hedge Options hedge Rexible sourcing policy question Previous page Next page Question 11 A small service facility which employs a parent bank personnel and is established to assist a multinational corporation's clients of the parent bank in dealing with the bank's correspondents is called what? Not yet answered Points out of 1.00 os question Select one: Foreign branch Representative office Correspondent bank Subsidiary bank Previous page Next page Cestion 12 Which of the following statements about the optimal International portfolio is NOT true? Norges Select one: artered Points out of 1.00 Flas Question o The Sharpe performance measure is used to help investors understand the return of an investment compared to its SK The Sharpe ratio is calculated as follows Risk Free Rate - Portfolio Return / Standard deviation White conducting portfolio analysis the highest Sharpe performance measure indicates the optimal international portfolio The measure of sensitivity of a national market to world market movements is called the world beta, EQU The political risk arising from uncertainty about the host country's policies affecting the local operations of multinational corporations is called what? Destion 13 Not yet anowered Dont out of 1.00 Tag questions 6 Select one O Control risk Liquidity risk Transfer risk Operational risk 13 14 Finish attem Time left 4:37 Previous page Next page Question 14 Not yet A document containing a written promise of a buyer to make a payment to a seller at a specified future date after he accepts shipped goods is called what? answered Points out of 1.00 Pfleg Question Select one: O. A banker's acceptance 6 A letter of credit 13 A bill of lading A time draft Finis Timele Previous page Next page Question 15 Which of the following is an example of buyback transaction? Not yet aryswered Points out of 1.00 Plas Guesson Select one: O Party A sells bags to Party 8. Party A promises to make a future purchase of shoes from Party B. o Party A trades yachts for luxury cars from Party B. Party A builds an oil refinery plant in Country B, providing capital to this developing nation. In return. Country B pays Party A with gasoline from the plant. O Party A and Country Benter a contract where Party A agrees to buy cocoa from Country B to manufacture chocolate Country B then buys that chocolate 1 Fint