Spring 2018 There are 33 questions. Good luck 1. Foreign exchange risk is A. The risk that foreign currency profits may evaporate in dollar terms duet unanticipated unfavorable exchange rate movements B. Legal restrictions on the movement of goods, people, and money C. prohibiting government operated enterprises D. a country divesting itself of the ownership and operation of a business ve turning it over to the free market system. 2. A multinational firm can be defined as a firm that A. invests short-term cash inflows in more than one currency B. has sales affiliates in several countries. C. is incorporated in more than one country D. incorporated in one country that has production and sales operations in other countries. Gresham's Law states that bad money drives good money out of circulation good money drives bad money out of circulation. 3. A. B. C. if a country bases its currency on both gold and silver, at an official exch will be the more valuable of the two metals that circulate. none of the above. D. 4. The international monetary system went through several distinct stag evolution. These stages are summarized, in alphabetic order, as follows: (i) - Bimetallism (ii) - Bretton Woods system (ii) - Classical gold standard (iv) - Flexible exchange rate regime (v) -Interwar period The chronological order that they actually occurred is: A. (ii), (G), (iv), (ii), and (v) B. (i), (ii), (v), (ii), and (iv) C. (vi), (i), (ii), (ii), and (v) D. (v), (ii), (i), (ii), and (iv)