CHAPTER 12INTERNATIONAL FINANCING AND NATIONAL CAPITAL
CHAPTER 12
INTERNATIONAL FINANCING AND NATIONAL CAPITAL MARKETS
12.1 The most preferred form of securities by U.S. firms for funding is
a. debt
b. preferred stock
c. common stock
d. stock derivatives
12.4 Which one of the following is a consequence of a well-functioning financial market? a. greater capital accumulation b. better projects get financed c. lower cost of capital d. all of the above
12.5 ______ is replacing bank loans with securities issued in public markets.
a. A drawdown
b. Securitization
c. Capital productivity
d. Regulatory arbitrage
12.6 The difference between countries in terms of company controls can be categorized into market-oriented and ____________ systems.
a. bank-centered
b. Anglo-Saxon
c. debt-denominated
d. keiretsu
12.13 Project finance is distinctive from other financings because the providers of the funding a. look primarily to the cash flow from the project as the source of funds b. use the parent’s assets to secure the funds c. merge the operations of the project with those of the parent d. have no exit plans
12.14 The dominant currency of the Eurocurrency markets is the a. U.S. dollar b. Euro c. Yen d. Pound
12.16 The supply of Eurodollar deposits is the result of a. Federal Reserve Board policy b. World Bank policy c. a resolution of the member governments of the Organization of Economic Cooperation and Development (OECD) d. none of the above
12.20 Eurocurrency spreads are __________ the domestic money market spreads.
a. wider than
b. narrower than
c. very similar to
d. exactly the same as
12.21 Historically, most Eurobonds have been ________ denominated.
a. U.S. dollar
b. yen
c. euro
d. pound
12.25 Debt denominated in a foreign currency that is launched, priced and traded in Asia is referred to as a _________ bond.
a. shogun
b. samurai
c. Asian-tiger
d. dragon
12.26 Which one of the following factors does NOT promote well-functioning financial markets? a. secure property rights b. high tariffs c.
INTERNATIONAL FINANCING AND NATIONAL CAPITAL MARKETS
12.1 The most preferred form of securities by U.S. firms for funding is
a. debt
b. preferred stock
c. common stock
d. stock derivatives
12.4 Which one of the following is a consequence of a well-functioning financial market? a. greater capital accumulation b. better projects get financed c. lower cost of capital d. all of the above
12.5 ______ is replacing bank loans with securities issued in public markets.
a. A drawdown
b. Securitization
c. Capital productivity
d. Regulatory arbitrage
12.6 The difference between countries in terms of company controls can be categorized into market-oriented and ____________ systems.
a. bank-centered
b. Anglo-Saxon
c. debt-denominated
d. keiretsu
12.13 Project finance is distinctive from other financings because the providers of the funding a. look primarily to the cash flow from the project as the source of funds b. use the parent’s assets to secure the funds c. merge the operations of the project with those of the parent d. have no exit plans
12.14 The dominant currency of the Eurocurrency markets is the a. U.S. dollar b. Euro c. Yen d. Pound
12.16 The supply of Eurodollar deposits is the result of a. Federal Reserve Board policy b. World Bank policy c. a resolution of the member governments of the Organization of Economic Cooperation and Development (OECD) d. none of the above
12.20 Eurocurrency spreads are __________ the domestic money market spreads.
a. wider than
b. narrower than
c. very similar to
d. exactly the same as
12.21 Historically, most Eurobonds have been ________ denominated.
a. U.S. dollar
b. yen
c. euro
d. pound
12.25 Debt denominated in a foreign currency that is launched, priced and traded in Asia is referred to as a _________ bond.
a. shogun
b. samurai
c. Asian-tiger
d. dragon
12.26 Which one of the following factors does NOT promote well-functioning financial markets? a. secure property rights b. high tariffs c.