第一章测试1.
Recently, financial markets have become highly integrated. This development
A:allows investors to diversify their portfolios internationally. B:allows minority investors to buy and sell stocks. C:has increased the cost of capital for firms. D:answers a and c are both correct.
答案:A
2.
Although the world economy is much more integrated today than was the case 10 or 20 years ago, a variety of barriers still hamper free movements of people, goods, services, and capital across national boundaries. These barriers include
A:information asymmetry. B:legal restrictions. C:excessive transportation costs. D:all of the above
答案:D
3.
A purely domestic firm sources its products, sells its products, and raises its funds domestically
A:all of the above are true B: can face stiff competition from a multinational corporation that can source its products in one country, sell them in several countries, and raise its funds in a third country. C:can still face exchange rate risk, just like a MNC. D:can be more competitive than a MNC on its home turf due to superior knowledge of the local market.
答案:A
4.
Suppose your firm invests $100,000 in a project in Italy. At the time the exchange rate is $1.25 = €1.00. One year later the exchange rate is the same, but the Italian government has expropriated your firm's assets paying only €80,000 in compensation. This is an example of
A: market imperfections. B:political risk. C:exchange rate risk. D:none of the above, since $100,000 = €80,000 × $1.25/€1.002
答案:B
5.
The ultimate guardians of shareholder interest in a corporation, are the
A: all of the above. B:rank and file workers. C:senior management. D:boards of directors.
答案:D
