The assets that play a major role in the global capital market and form the basis

of other types of assets are:

A$.$ Stocks

B$.$ Debt securities issued by the government

C$.$ Derivatives

D$.$ Loans

E$.$ All of the above

The phase of the globalization process characterized by imports from foreign

suppliers and exports to foreign buyers is called the:

A$.$ domestic phase.

B$.$ multinational phase.

C$.$ international trade phase.

D$.$ import$-$export banking phase.

E$.$ Franchising phase.

The Eurocurrency market is a major source of

to finance

corporate working capital needs $($including export and import financing$)$:

A$.$ long$-$term bank loans

B$.$ Cash

C$.$ Bonds

D$.$ Capital

E$.$ short$-$term bank loans. What are the main drives for firms to go international?

A$.$ Market seeking

B$.$ Raw material seeking

C$.$ Production efficiency seeking

D$.$ All of the above

E$.$ A and B

What's the main aim of firms in the shareholder maximization model?

A$.$ A firm should strive to maximize the return to shareholders

B$.$ A firm should strive to maximize the return to stakeholders

C$.$ A firm should strive to maximize the achievement of environmental, social and

governance goals

D$.$ A firm should minimize its leverage ratio.

E$.$ All of the above Mama Inc. has two classes of common stock. Class A has $5$ million shares with

$10$ votes per share. Class B has $5$ million shares with $1$ vote per share. If the

dividends per share are equal for both class A and $B$ stock, then Class $A$

shareholders have of the votes and of the dividends.

A$.90\mathrm{.}91\%$;$90\mathrm{.}91\%$

B$.90\mathrm{.}91\%$;$50\mathrm{.}00\%$

C$.50\mathrm{.}00\%$;$50\mathrm{.}00\%$

D$.83\mathrm{.}33\%$;$33\mathrm{.}33\%$

E$.99\mathrm{.}9\%,91\mathrm{.}67\%$

What is a limitation of a fixed exchange rate regime?

A$.$ Consistent with economic fundamentals

B$.$ The exchange rate is determined by market forces.

C$.$ Exchange rate instability

D$.$ The central bank can't add a local currency unit without backing it with a foreign

currency unit.

E$.$ Need for central banks to maintain large quantities of hard currencies and gold to

defend the fixed rate.