International Business Administration SIB675 Quiz: sib675 mc questions
28 Jul 2016
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Ch1:explain the agency problem of mncs; benefits and risks of international. Business;describe constraints that interfere with an mnc"s objective. Ch3: explain why an mnc may invest funds in a financial market outside its own country. Utah bank"s bid price for canadian dollars is $. 7938 and its ask price is $. 81. Poland"s currency (the zloty) is worth $. 17 and the japanese yen is worth $. 008. Ch4: assume the spot rate of the british pound is . 73. The expected spot rate one year from now is assumed to be . 66. Assume u. s. interest rates fall relative to british interest rates. Ch5: compare and contrast forward and futures contracts. Differentiate between a currency call option and a currency put option. List the factors that affect currency put options and briefly explain the relationship that exists for each. Ch6: compare and contrast the fixed, freely floating, and managed float exchange rate systems.
