国际金融2考试.pdfVIP

FINA 4324: Fall 2010 Illustrative Questions for the Material Covered Prior to Test I (Answer key is at the end.) 1. Coca Cola, a multinational firm, has not been able achieve a significant growth in its soft drink sales in the U.S. in recent years. It is now trying to sell its products in more and more countries abroad. Coca Cola could best be classified as a ______________. A. Raw-material seeker B. Market seeker C. Cost minimizer D. None of the above 2. If the real exchange rate changes from €0.90/$ to €0.80/$, then: (a) The euro has appreciated, and the French will find U.S. goods cheaper. (b) The euro has depreciated, and the French will find U.S. goods more expensive. (c) The euro has appreciated, and the French will find U.S. goods more expensive. (d) The euro has depreciated, and the French will find U.S. goods cheaper. 3. Suppose that the economic growth rate is higher in the U.S. than in Germany. Also assume that exchange rates are free to vary and that other factors are held constant. So, the dollar is likely to ________________ against the Euro. A. Appreciate B. Depreciate C. Remain the same D. Devalue 4. Switzerland has a ____________________ exchange rate against the US$, and China has a ____________________ exchange rate against the US$. A. fixed; fixed B. floating; floating C. fixed; floating D. None of the above 5. In the past years, China kept the value of its currency lower than what it should be. This exchange rate policy ____________ from China and ___________ into China. A. increases exports; increases imports B. increases exports; decreases imports