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Which of the facing is the than forply domestic A Agency where one party, is expected at the eye oro The threat of horror and can produce ency costs C. The margareturn for MNC rally below that of a purely dom Then because I had to compete with mest intro D. The Product Code Theory wages that rms may additional portunities outside its home country as they are 8. Which of the following is true A Money tends to flow to countries with high interest rates its current transactions A current account deficit suggests a greater aflow of funds to the specified country for The financial account summarites the flow of funds between one specified country and all other countries due to trade, dividends, interest payments and transfers D. a country's currency begins to rise in value, its current account balance will increase Imports decrease and exports increase 9. Which of the following is false: A For someone living in the Palestine, USD/ILS exchange rate of US 3.4 is considered direct quotation B. The bank's ask quote for a foreign currency will always be lower than its bid quote. CU.S. dollar deposits placed in banks in other continents are called Eurodollars. D. Borrowers usually prefer that loans be denominated in the currency of the country in which they receive most of their cash flows 10. When Inflation in the USA (USD) increases relative to inflation in the UK (GBP), holding other factors constant, then we expect: A USD to appreciate relative to USD B. GBP to depreciate relative to USD C. GBP to appreciate relative to USD D. None of the above 11. If income level in Jordan increases relative to income level in USA, then we expect: A. The demand for Jordanian Dinar (JOD) to increase, with no change in supply. B. The demand for USD to increase, with no change in supply C The demand for USD to increase, with an increase in supply. D. The demand for JOD to increase, with a decrease in supply. a Page 3 of 6

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