ESPAÑA

1.In a stock market transaction, who is the seller?

The investor.

2. When the sum of requirements in certain foreign currency does not equal to the sum
of obligations in this currency, the currency position is?
Open.

3. The current account in the Balance of Payments of countries includes

The export and import of goods and services.

4. This refers to a ratio between the sum of assets and off-balance obligations in certain
foreign currency and sum of balance and off-balance obligations in the same currency.
Currency Position of Bank.

5. What is the significance of a positive NPV value?

The investment is acceptable.

6. What does the symbol Rt represent in the formula for calculating NPV?
The net cash inflow-outflows during a single period.

7. The Bank of International Settlement holds current accounts for individuals or

governments.
false.

8. Joy relies on importation for her manufacturing business. How does a sudden
depreciation dollar affect her business?
Her business could buy less raw materials.

9. What is the primary purpose of the international securities market?

To provide a platform for buying and selling securities.

10. If a worker lives in a reciprocal state and works in a non-reciprocal state, what
should the employer withhold for income taxes?
Taxes only for the state of residence.

11. How is the Net Present Value (NPV) calculated?

By subtracting the present value of cash outflows from the present value of cash
inflows.
12. When there is a ____________ in the economy, a trade deficit emerges.
The value of commodities exported is less than the value of imported items.

13. What is soveriegn risk in the context of the international credit market?
The risk of a country not being able to meet its financial obligations.

14. What is the exchange of current goods for future goods called?
Inter-temporal Trade.

15. What is a place where goods and services are traded?

Market.

16. How is the term "investment" used in the context of financial instruments?
Encompasses both the investment of funds into real assets and the purchase of
securities.

17. You observed in Korea that the exchange rate between the Korean won and the
U.S. dollar has shifted remarkably. The won/ dollar exchange rate has jumped from 700
wons per dollar to 1050 wons per dollar. Has Korean won Appreciated or Depreciated?
Depreciated.

18. What is the primary reason for the increased role of the international securities
market (ISM) in recent years?
Rapid economic rise of industrialized countries.

19. Why do large corporations, with a high credit rating, choose to issue securities in the
international securities market?
Limited services provided by the national banking system.

20. What advantage does the issuance of bonds provide to companies in terms of
financing?
Reduction of financial risk.

21. How do international payment systems differ from domestic payment systems?
International payment systems differ from domestic payment systems in terms of
cross-border transactions, currency conversion, security measures, regulations,
and fees.

22. What is the role of securities exchanges in the international securities market?
To facilitate the buying and selling of securities.

23. Which of the following are a part of the Capital account of the Balance of Payments?
All of the choices.

24. The balance of payments are the result of adding the current + the capital account
together.
False.

25. It is a market, in which the securities expressed in Eurocurrencies are: produced,

bought and sold.
Securities Euromarket.

26. How does the value of financial resources over time relate to the purchasing power
of money?
It decreases due to devaluation caused by inflation.

27. What is the Net Present Value (NPV) in capital budgeting?

The difference between the market value of the project and the cost of its
implementation.

28. What is the primary purpose of issuing bonds denominated in foreign currency?
Reducing the national debt.

29. According to the Bank for International Settlements, what are the three types of
security issues in the international market?
Securities issued by nonresidents, securities issued by residents in foreign
currency, and securities issued by residents in national currency.

30. What are examples of financial instruments considered as investment objects?

Bank deposits and securities.

31. Name one type of international payment system.

SWIFT.

32. When the sum of requirements exceeds the sum of obligations in every foreign
currency, as a result of this fact the bank can sustain losses in case of increase of
national currency exchange rate in relation to foreign, the currency position is?
Opened Short.
33. Is the current account always balanced?
No, it can run surpluses and it can run deficits.

34. Current account deficits are unfavourable for a country since they suggest that it is
experiencing.
Both alternatives b and c are correct.

35. Americans donate $25 million in Tsunami relief to Thai relief organizations.
Current Account.

36. The international securities market is divided into how many structural segments?
4.

37. An ARAMCO employee working in Saudi Arabia sends most of his paycheck home
to his wife in Houston.
Current Account.

38. Forms of debenture on the international loan capital market conventionally is divided
into _____.
3.

39. This is refers to sending or receiving payments from one country to another.
International Payment System.

40. What distinguishes the stock market in terms of the instruments it deals with?
Long-term borrowing instruments and property instruments.

41. This is a general term used to describe uncertainty.

Risk.

42. What are the two main components that form the securities market?
Stock market and money market.

43. What is an investment vehicle that stores value towards the future?
Financial Securities.

44. Foreign investments are recorded in Capital Account of Balance of Payments.

True.
45. What is the present level of development of the world economy calling for in
international taxation?
Fiscal policies based on each country's national interests.

46. What is the market of long-term securities called?

Stock Market.

47. The United Nations operates a world central bank that provides a world monetary
unit to accommodate commerce across national boundaries.
False.

48. The following are the main goals of investors, except;

The solidity of investments.

49. The following are loan instruments, except;

Foreign Investment.

50. What defines europapers according to the Council Directive 89/298/EEC of the
European Commission?
Securities circulated in multiple countries, offered in considerable volumes, and
initially purchased through mediation by a credit organization or financial
institution.

51. What does the symbol st represent in the NPV formula?

The net cash inflow-outflows during a single period.

52. The supply-demand relationship involving two currencies is said to be in balance at

the spot exchange rate.
True.

53. What is the role of the credit rating agencies in the international credit market?
To assess the creditworthiness of the debt issuers.

54. If the U.S.A. imports more than it exports, then this means that
The supply of dollars is likely to exceed the demand in the foreign exchange
market, ceteris paribus.

55. What is one of the objectives of harmonizing national tax systems globally?
Coordinating tax policies among separate countries.
56. What can function as a medium of exchange in international payments?
Reserve currency.

57. What is the primary purpose of the international credit market?

To provide a platform for lending and borrowing across borders.

58. Even if taxes are not withheld by the employer in the state of work due to reciprocity,
does the worker still owe state income taxes?
Yes, the worker is still liable for state income taxes in their state of residence.

59. According to the constitution of many countries, who can issue securities for both
local and foreign investors?
Local authorities.

60. Which of the following is NOT a type of security traded in the international securities
market?
Currency.