INTERNATIONAL FINANCIAL MANAGEMENT
INTERNATIONAL FINANCIAL MANAGEMENT Multiple Choice Questions 1) Which of the following is not a reason for international investment? o To provide an expected risk-adjusted in excess of that required o To gain access to important raw materials. o To produce and/ or services more efficiently than possible domestically o International investments have less political risk than domestic investment. 2) The ___________ refers to the orderly relationship between spot and forward currency exchange rates and the rates of interest between countries. o One-price rules o Interest –rate parity o Purchasing – power parity o Exchange- power parity 3) The ______________ is especially well suited tom offers hedging protection against transactions risk exposure o Forward market o Spot market o Transaction market o ...