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International Corporate Finance Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. In the event that prices don't match, a consumer will look to the lesser price country to buy the product in order to save money. This is known as _____.

Question 2 2. When are exchange rates determined by demand and supply forces?

Question 3 3. If more Americans want to suddenly purchase goods in Mexico, what likely happens?

Question 4 4. The exchange rate between two countries will remain the same as the ratio of the price levels for the same two countries. This is an example of _____.

Question 5 5. What is the rate at which one currency is converted in another called?

Page 2

Question 6 6. Which of the following is true of purchasing power?

Question 7 7. Which of the following is an example of a law of one price provision?

Question 8 8. The U.S. dollar is valued at 0.94 euros. If arbitrage occurs, what will happen to the value of the dollar?

Question 9 9. Which of the following statements is true?

Question 10 10. If the American dollar rose in value in relation to the Japanese Yen, what would likely be the effect?

International Corporate Finance Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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