Fundamentals of Multinational Finance, 4e (Moffett)
Chapter 1 Current Multinational Challenges and the Global Economy
Multiple Choice and True/ False Questions
1.1 The Global Financial Marketplace
1) Which of the following firms are NOT considered to be multinational enterprises (MNEs) even if they have operations in more than one country?
A) for-profit companies
B) not-for-profit organizations
C) non-government organizations (NGOs)
D) all of the above may be considered MNEs
Answer: D
Diff: 1
Topic: 1.1 The Global Financial Marketplace
Skill: Recognition

2) "BRIC" is a term coined in 2001 to refer to a group of countries at about the same stage of advanced economic development. The BRIC countries are ________.
A) Belgium, Romania, Italy, and Canada
B) Brazil, Russia, India, and China
C) Britain, Romania, Israel, and Colombia
D) Brazil, Russia, Italy, and Chile
Answer: B
Diff: 1
Topic: 1.1 The Global Financial Marketplace
Skill: Recognition

3) According to the authors, which of the following groups or securities are at the "heart" to the global capital markets?
A) debt securities issued by governments
B) bank loans and corporate bons
C) equity securities
D) derivative securities
Answer: A
Diff: 1
Topic: 1.1 The Global Financial Marketplace
Skill: Recognition

4) ________ are the largest markets in the world.
A) United States equity markets
B) European debt markets
C) Global currency markets
D) Chinese export markets
Answer: C
Diff: 1
Topic: 1.1 The Global Financial Marketplace
Skill: Recognition

5) Domestic currencies of one country on deposit in a second country are called ________.
A) export deposits
B) eurocurrencies
C) import deposits
D) forocurrencies
Answer: B
Diff: 1
Topic: 1.1 The Global Financial Marketplace
Skill: Recognition

6) Eurocurrency deposits are an efficient and convenient