1. Slow economic growth and continued unemployment problems are common reasons for central banks to hold currency values down.

True

False

2. Which of the following is an advantage to exporting goods to reach international markets rather than entering into some form of FDI?

a. a greater risk of losing markets to copycat goods producers

b. fewer agency costs

c. an inability to exploit R&D as effectively as if also invested abroad

d. fewer direct advantages from research and development

3. The reference rate of interest in the eurocurrency market is the:

a. Federal funds rate

b. Prima rate

c. London Interbank Offered Rate

d. Treasury rate

4. A national securities market is segmented if the required rate of return on securities in that market differs from comparable securities traded in other, unsegmented markets.

True

False