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25.3.44. When Honda, a Japanese auto maker, built a factory in Ohio, A. It was engaged in foreign direct investment
B. It was engaged in portfolio investment
C. It was engaged in a cross-border acquisition
D. None of the above.

26.3.45. Government controlled investment funds, known as sovereign wealth funds, A. Are playing a less-important role in international finance following the end of the fixed exchange rate era B. Are mostly domiciled in Asian and Middle Eastern countries. C. Are usually are responsible for converting trade surpluses and oil revenues into foreign exchange reserves. D. None of the above

27.3.46. Foreign direct investment (FDI) occurs
A. when an investor acquires a measure of control of a foreign business B. when there is an acquisition, by a foreign entity in the U.S., of 10 percent or more of the voting sharesof a business C. with sales and purchases of foreign stocks and bonds that do not involve a transfer of control D. a and b

28.5.10. Consider a U.S. importer desiring to purchase merchandise from a Dutch exporter invoiced in euros, at a cost of €512,100. The U.S. importer will contact his U.S. bank (where of course he has an account denominated in U.S. dollars) and inquire about the exchange rate, which the bank quotes as €1.0242/$1.00. The importer accepts this price, so his bank will ____________ the importer's account in the amount of ____________. A. Debit, $500,000

B. Credit, €512,100
C. Credit, $500,000
D. Debit, €512,100


Spot Rate Quotations
29.5.16. Using the table shown, what is the most current spot exchange rate shown for British pounds? Use a direct quote from a U.S. perspective. A. $1.61 = ≤1.00
B. $1.60 = ≤1.00
C. $1.00 = ≤0.625
D. $1.72 = ≤1.00

30.5.17. Suppose that the current exchange rate is €0.80 = $1.00. The direct quote, from the U.S. perspective is A. €1.00 = $1.25
B. €0.80 = $1.00
C. ≤1.00 = $1.80
D. None of the above

31.5.18. Suppose that the current exchange rate is €1.00...
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