C214 FINANCIAL MANAGEMENT (End of Section) QUIZBANK COMPLETE LATEST UPDATED WESTERN GOVERNORS UNIVERSITY.

C214 FINANCIAL MANAGEMENT (End of Section) QUIZBANK COMPLETE LATEST UPDATED WESTERN GOVERNORS UNIVERSITY.
(T/f) True or False: Country risk and political risk are the same thing?
16.8.2
Correct Answer -False
Think of the example of Venezuela. Before Hugo Chavez, the country had
a vibrant economy due to its oil. After Hugo Chavez, the country still had
the same natural resources, but his political stance has made the country
economically weak.
Found in the following section(s) of the text:
16.8: Country / Political Risk
Why would a country have incentives to devalue its currency? A weaker
currency ______________.
makes exports relatively cheaper for foreign consumers.
makes imports relatively more expensive for domestic consumers.
in general a weaker currency can help a domestic economy.
all of the above are true.
none of the above are true. 16.11.1
Correct Answer -all of the above are true.
Found in the following section(s) of the text:
16.3: Exchange Rate Risk
If a currency (Swiss Franc) appreciates relative to a second currency
(Chinese Yuan), then the exchange rate measured as SF/Yuan goes:
Stays the same