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- Which of the following statements is true of export financing? Governments may promote exports by offering loan guarantees. The Ex-Im Bank finances the export activities of companies all over the world. Small businesses that have just started to export are financially stable and seldom require financing from government agencies. Governments usually offer loans to exporters with above-market interest rates.For each of the following monetary policy tools:A. The BSP buys securities in the open market.B. The BSP sells foreign exchange currentC. The BSP increases the reserve requirement ratio.D. The BSP applies its moral suasion ability requesting commercial banks to lowerdown interest rates.E. The government decided to deposit funds at the BSP.1. Determine whether the monetary tool imposed by the BSP is an expansionary or acontractionary policy.Why do governments intervene in the foreign exchange market? Check all that apply: To maintain exchange rate boundaries To reduce fear in financial markets To smooth out the business cycle To smooth out exchange rate movements To earn a profit for the government
- Point out a mistake in this sentence, „Domestic banks engaged in overseas lending belong among global-level actors in the world economy. “Which of the following is NOT a benefit of investing in ADRs? The dividends are received in U.S. currency. Currency risk is minimized. ADRs are subject to anti-fraud rules. The transactions are done in U.S. currency.Why might a foreign government’s policies be closely monitored by investors in other countries, even if the investors plan no investments in that country? Explain how monetary policy in one country can affect interest rates in other countries.
- d. Discuss whether Galina Works should avoid exchange rate risk by invoicing foreign customers in dollars. e. Explain to Galina Works how, in respect of foreign sales, discounting and factoring can be used as hedging tools to manage foreign currency risk.Which of the following is a factor influencing the reduction of Caribbean correspondent bank relationships by global banks? Question 22Answer a. Trade and economic sanction violations costs incurred from additional due diligence to ensure full compliance. b. Nationalization of foreign bank branches. c. Increased competition from indigenous Caribbean banks. d. Increasing non-performing loans among Caribbean banks.Find a mistake, „Domestic banks engaged in overseas lending belong among global-level actors in the world economy. “
- Credit entries in the U.S. balance of payments A. result from foreign sales of US. goods and services, goodwill, financial claims, and real assets B. result from U.S. purchases of foreign goods and services, goodwill, financial claims, and real assets give rise to the demand for dollars. give rise to the supply of dollars. C. D. The key strengths of the public corporation is/are their capacity to allow efficient risk sharing among many investors their capacity to raise large amounts of funds at relatively low cost their capacity to consolidate decision-makingThe Oman customer paid cash to Unites States of America is suitable to Select one : a Foreign investment b . Foreign currency translation c . Inflation accounting d Fluctuation riskIf you are the manager, you should understand which of the operations do not create benefit from depreciation of the firm's local currency. I. Borrowing in a foreign country and converting the funds to the local currency prior to the depreciation. II. Purchasing foreign supplies. III. Investing in foreign bank accounts denominated in foreign currencies prior to depreciation of the local currency. A. I, IV B. II, IV C. I, II D. II, III