Finance

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17 MULTINATIONAL CHAPTER FINANCIAL MANAGEMENT Please see the preface for information on the AACSB letter indicators (F, M, etc.) on the subject lines. True/False Easy: (17.3) Multinational financial management 1 . FT Answer: a EASY Multinational financial management requires that financial analysts consider the effects of changing currency values. a. True b. False (17.3) Multinational financial management 2 . FT Answer: b EASY Legal and economic differences among countries, although important, do NOT pose significant problems for most multinational corporations when they coordinate and control worldwide operations of subsidiaries. a. True b. False (17.3) Exchange rates 3 . FT Answer: b EASY Exchange rate quotations consist solely of direct quotations. a. True b. False (17.3) Cross rates 4 . FT Answer: a EASY Calculating a currency cross rate involves determining the exchange rate for two currencies by using a third currency as a base. a. True b. False 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 17: Multinational True/False Page 1 (17.3) Currency appreciation 5 . FT Answer: a EASY When the value of the U.S. dollar appreciates against another country's currency, we may purchase more of the foreign currency with a dollar. a. True b. False (17.4) Trade deficit and depreciation 6 . FT Answer: b EASY If the United States is running a deficit trade balance with China, then in a free market we would expect the value of the Chinese yuan to depreciate against the U.S. dollar. a. True b. False (17.5) Floating exchange rates 7 . FT Answer: a EASY The United States and most other major...