Under the gold standard before World War I, an ounce of gold cost GBP4.2214 in London and USD20.6686 in Boston.What was the exchange rate between these currencies under this standard?

Select one:

a.USD0.2345/GBP

b.GBP0.2042/USD

c.GBP4.8961/USD

d.USD4.3261/GBP

As willing__________ takers, __________ banks and treasuries differ in motive and behaviour from all other foreign exchange market participants

Select one:

a.profit; central

b.profit; commercial

c.loss; central

d.loss; commercial

The exchange rate quote of JPY112.50/USD is given in the __________ term and is a/an __________ quote in the US.

Select one:

a.American; direct

b.European; indirect

c.European; direct

d.American; indirect

In which of the following aspects is the financial management of multinational companies NOT very different from the financial management of domestic companies?

Select one:

a.Dealing with various cultures, different histories, and institutions.

b.Dealing with various corporate governance regulations.

c.Dealing with foreign exchange risk

d.Applying modified finance theories.

One innovation introduced in the Bretton Woods agreement was the Special Drawing Right (SDR), an international reserve asset, created by the __________.

Select one:

a.US Department of the Treasury

b.World Bank

c.International Bank for Reconstruction and Development

d.International Monetary Fund

An exchange rate quote of AUD0.910/NZD means that the price of one unit of __________ is __________ 0.910.

Select one:

a.NZD; NZD

b.AUD; AUD

c.NZD; AUD

d.AUD; NZD

Say Malaysia places a strict quota on goods imported from North Korea but North Korea does not retaliate.Holding other factors constant, this should immediately cause the supply of Malaysian Ringgit to be exchanged for North Korean Won to __________ and the value of the Malaysia Ringgit to ___________.

Select one:

a.decline; increase

b.increase; decline

c.decline; decline

d.increase; increase

The international credit market primarily concentrates on _______________.

Select one:

a.short-term lending

b.providing exchange of foreign currencies for credit firms

c.medium-term lending

d.long-term lending

Which of the following isNOT TRUEregarding American Depository Receipts (ADRs)?

Select one:

a.ADRs are denominated in the currency of the stock's home country

b.ADRs allow non-US firms to tap into the US market for funds.

c.ADRs sometimes allow for arbitrage opportunities

d.ADRs enable US investors to avoid cross-border transactions.