Q&A Hero

Q: Going public establishes a market value for the firm's stock, and it also ensures that a liquid market will continue to exist for the firm's shares. This is especially true for small firms that are not widely followed by security analysts. a. True b. False

Q: The advantages of a partitioned database include all of the following except a. user control is enhanced b. data transmission volume is increased c. response time is improved d. risk of destruction of entire database is reduced

Q: A box of chocolate candy costs 28.80 Swiss francs in Switzerland and $20 in the United States. Assuming that purchasing power parity (PPP) holds, what is the current exchange rate? a. 1 U.S. dollar equals 0.69 Swiss francs b. 1 U.S. dollar equals 0.85 Swiss francs c. 1 U.S. dollar equals 1.21 Swiss francs d. 1 U.S. dollar equals 1.29 Swiss francs e. 1 U.S. dollar equals 1.44 Swiss francs

Q: Which procedure will prevent two end users from accessing the same data element at the same time? a. data redundancy b. data replication c. data lockout d. none of the above

Q: Suppose a carton of hockey pucks sell in Canada for 105 Canadian dollars, and 1 Canadian dollar equals 0.71 U.S. dollars. If purchasing power parity (PPP) holds, what is the price of hockey pucks in the United States? a. $14.79 b. $63.00 c. $74.55 d. $85.88 e. $147.88

Q: Data currency is preserved in a centralized database by a. partitioning the database b. using a lockout procedure c. replicating the database d. implementing concurrency controls

Q: A product sells for $750 in the United States. The exchange rate is $1 to 1.65 Swiss francs. If purchasing power parity (PPP) holds, what is the price of the product in Switzerland? a. 123.75 Swiss francs b. 454.55 Swiss francs c. 750.00 Swiss francs d. 1,237.50 Swiss francs e. 1,650.00 Swiss francs

Q: An example of a distributed database is a. partitioned database b. centralized database c. networked database d. all are examples of distributed databases

Q: Suppose 1 U.S. dollar equals 1.60 Canadian dollars in the spot market. 6-month Canadian securities have an annualized return of 6% (and thus a 6-month periodic return of 3%). 6-month U.S. securities have an annualized return of 6.5% and a periodic return of 3.25%. If interest rate parity holds, what is the U.S. dollar-Canadian dollar exchange rate in the 180-day forward market?a. 1 U.S. dollar = 0.6235 Canadian dollarsb. 1 U.S. dollar = 0.6265 Canadian dollarsc. 1 U.S. dollar = 1.0000 Canadian dollarsd. 1 U.S. dollar = 1.5961 Canadian dollarse. 1 U.S. dollar = 1.6039 Canadian dollars

Q: Which of the following is a level of the database that is defined by the data definition language? a. user view b. schema c. internal view d. all are levels or views of the database

Q: Suppose 90-day investments in Britain have a 6% annualized return and a 1.5% quarterly (90-day) return. In the U.S., 90-day investments of similar risk have a 4% annualized return and a 1% quarterly (90-day) return. In the 90-day forward market, 1 British pound equals $1.65. If interest rate parity holds, what is the spot exchange rate? a. 1 pound = $1.8000 b. 1 pound = $1.6582 c. 1 pound = $1.0000 d. 1 pound = $0.8500 e. 1 pound = $0.6031

Q: All of the following are elements of the DBMS which facilitate user access to the database except a. query language b. data access language c. data manipulation language d. data definition language

Q: In Japan, 90-day securities have a 4% annualized return and 180-day securities have a 5% annualized return. In the United States, 90-day securities have a 4% annualized return and 180-day securities have an annualized return of 4.5%. All securities are of equal risk, and Japanese securities are denominated in terms of the Japanese yen. Assuming that interest rate parity holds in all markets, which of the following statements is most CORRECT? a. The yen-dollar spot exchange rate equals the yen-dollar exchange rate in the 180-day forward market. b. The yen-dollar exchange rate in the 90-day forward market equals the yen-dollar exchange rate in the 180-day forward market. c. The spot rate equals the 90-day forward rate. d. The spot rate equals the 180-day forward rate. e. The yen-dollar spot exchange rate equals the yen-dollar exchange rate in the 90-day forward market.

Q: Which statement is false? a. The DBMS is special software that is programmed to know which data elements each user is authorized to access. b. User programs send requests for data to the DBMS. c. During processing, the DBMS periodically makes backup copies of the physical database. d. The DBMS does not control access to the database.

Q: Suppose 6 months ago a Swiss investor bought a 6-month U.S. Treasury bill at a price of $9,708.74, with a maturity value of $10,000. The exchange rate at that time was 1.420 Swiss francs per dollar. Today, at maturity, the exchange rate is 1.324 Swiss francs per dollar. What is the annualized rate of return to the Swiss investor? a. −7.92% b. −4.13% c. 6.00% d. 8.25% e. 12.00%

Q: Which of the following is not a common form of conceptual database model? a. hierarchical b. network c. sequential d. relational

Q: A foreign currency will, on average, depreciate against the U.S. dollar at a percentage rate approximately equal to the amount by which its inflation rate exceeds that of the United States. a. True b. False

Q: In a relational database a. the user's view of the physical database is the same as the physical database b. users perceive that they are manipulating a single table c. a virtual table exists in the form of rows and columns of a table stored on the disk d. a programming language (COBOL) is used to create a user's view of the database

Q: A U.S.-based importer, Zarb Inc., makes a purchase of crystal glassware from a firm in Switzerland for 39,960 Swiss francs, or $24,000, at the spot rate of 1.665 francs per dollar. The terms of the purchase are net 90 days, and the U.S. firm wants to cover this trade payable with a forward market hedge to eliminate its exchange rate risk. Suppose the firm completes a forward hedge at the 90-day forward rate of 1.682 francs. If the spot rate in 90 days is actually 1.638 francs, how much will the U.S. firm have saved or lost in U.S. dollars by hedging its exchange rate exposure? a. −$396 b. −$243 c. $0 d. $243 e. $638

Q: In the relational database model all of the following are true except a. data is presented to users as tables b. data can be extracted from specified rows from specified tables c. a new table can be built by joining two tables d. only one-to-many relationships can be supported

Q: If a dollar will buy fewer units of a foreign currency in the forward market than in the spot market, then the forward currency is said to be selling at a premium to the spot rate. a. True b. False

Q: In the relational database model a. relationships are explicit b. the user perceives that files are linked using pointers c. data is represented on two-dimensional tables d. data is represented as a tree structure

Q: If an investor can obtain more of a foreign currency for a dollar in the forward market than in the spot market, then the forward currency is said to be selling at a discount to the spot rate. a. True b. False

Q: Which term is not associated with the relational database model? a. tuple b. attribute c. collision d. relation

Q: Suppose a U.S. firm buys $200,000 worth of stereo speaker wire from a Mexican manufacturer for delivery in 60 days with payment to be made in 90 days (30 days after the goods are received). The rising U.S. deficit has caused the dollar to depreciate against the peso recently. The current exchange rate is 5.50 pesos per U.S. dollar. The 90-day forward rate is 5.45 pesos/dollar. The firm goes into the forward market today and buys enough Mexican pesos at the 90-day forward rate to completely cover its trade obligation. Assume the spot rate in 90 days is 5.30 Mexican pesos per U.S. dollar. How much in U.S. dollars did the firm save by eliminating its foreign exchange currency risk with its forward market hedge? a. $0 b. $1,834.86 c. $4,517.26 d. $5,712.31 e. $7,547.17

Q: Suppose Stackpool Inc. had inventory in Britain valued at 240,000 pounds one year ago. The exchange rate for dollars to pounds was 1 = 2 U.S. dollars. This year the exchange rate is 1 = 1.82 U.S. dollars. The inventory in Britain is still valued at 240,000 pounds. What is the gain or loss in inventory value in U.S. dollars as a result of the change in exchange rates?a. −$240,000b. −$43,200c. $0d. $43,200e. $47,473

Q: In a hierarchical model a. links between related records are implicit b. the way to access data is by following a predefined data path c. an owner (parent) record may own just one member (child) record d. a member (child) record may have more than one owner (parent)

Q: Suppose Yates Inc., a U.S. exporter, sold a consignment of antique American muscle-cars to a Japanese customer at a price of 143.5 million yen, when the exchange rate was 140 yen per dollar. In order to close the sale, Yates agreed to make the bill payable in yen, thus agreeing to take some exchange rate risk for the transaction. The terms were net 6 months. If the yen fell against the dollar such that one dollar would buy 154.4 yen when the invoice was paid, what dollar amount would Yates actually receive after it exchanged yen for U.S. dollars? a. $1,075,958 b. $1,025,000 c. $1,000,000 d. $975,610 e. $929,404

Q: Which duty is not the responsibility of the database administrator? a. to develop and maintain the data dictionary b. to implement security controls c. to design application programs d. to design the subschema

Q: The threat of expropriation creates an incentive for the multinational firm to minimize inventory holdings in certain countries and to bring in goods only as needed. a. True b. False

Q: Which statement is not correct? A query language like SQL a. is written in a fourth-generation language b. requires user familiarity with COBOL c. allows users to retrieve and modify data d. reduces reliance on programmers

Q: Exchange rates influence a multinational firm's inventory policy because changing currency values can affect the value of inventory. a. True b. False

Q: The data manipulation language a. defines the database to the database management system b. transfers data to the buffer area for manipulation c. enables application programs to interact with and manipulate the database d. describes every data element in the database

Q: Due to advanced communications technology and the standardization of general procedures, working capital management for multinational firms is no more complex than it is for large domestic firms. a. True b. False

Q: The data definition language a. identifies, for the database management system, the names and relationships of all data elements, records, and files that comprise the database b. inserts database commands into application programs to enable standard programs to interact with and manipulate the database c. permits users to process data in the database without the need for conventional programs d. describes every data element in the database

Q: Credit policy for multinational firms is generally more risky due in part to the additional consideration of exchange rates and also due to uncertainty regarding the credit worthiness of many foreign customers. a. True b. False

Q: Users access the database a. by direct query b. by developing operating software c. by constantly interacting with systems programmers d. all of the above

Q: Tashakori Trucking, a U.S.-based company, is considering expanding its operations into a foreign country. The required investment at Time = 0 is $10 million. The firm forecasts total cash inflows of $4 million per year for 2 years, $6 million for the next 2 years, and then a possible terminal value of $8 million. In addition, due to political risk factors, Tashakori believes that there is a 50% chance that the gross terminal value will be only $2 million and a 50% chance that it will be $8 million. However, the government of the host country will block 20% of all cash flows. Thus, cash flows that can be repatriated are 80% of those projected. Tashakori's cost of capital is 15%, but it adds one percentage point to all foreign projects to account for exchange rate risk. Under these conditions, what is the project's NPV?a. $1.01 millionb. $2.77 millionc. $3.09 milliond. $5.96 millione. $7.39 million

Q: Which of the following may provide many distinct views of the database? a. the schema b. the internal view c. the user view d. the conceptual view

Q: When considering the risk of a foreign investment, a higher risk might arise from exchange rate risk and political risk while lower risk might result from international diversification. a. True b. False

Q: A description of the physical arrangement of records in the database is a. the internal view b. the conceptual view c. the subschema d. the external view

Q: The cost of capital may be different for a foreign project than for an equivalent domestic project because foreign projects may be more or less risky. a. True b. False

Q: The cash flows relevant for a foreign investment should, from the parent company's perspective, include the financial cash flows that the subsidiary can legally send back to the parent company plus the cash flows that must remain in the foreign country. a. True b. False

Q: Which of the following is not a responsibility of the database management system? a. provide an interface between the users and the physical database b. provide security against a natural disaster c. ensure that the internal schema and external schema are consistent d. authorize access to portions of the database

Q: The textbook refers to four interrelated components of the database concept. Which of the following is not one of the components? a. the database management system b. the database administrator c. the physical database d. the conceptual database

Q: Because political risk is seldom negotiable, it cannot be explicitly addressed in multinational corporate financial analysis. a. True b. False

Q: A U.S.-based company, Stewart, Inc., arranged a 2-year, $1,000,000 loan to fund a project in Mexico. The loan is denominated in Mexican pesos, carries a 10.0% nominal rate, and requires equal semiannual payments. The exchange rate at the time of the loan was 5.75 pesos per dollar, but it dropped to 5.10 pesos per dollar before the first payment came due. The loan was not hedged in the foreign exchange market. Thus, Stewart must convert U.S. funds to Mexican pesos to make its payments. If the exchange rate remains at 5.10 pesos per dollar through the end of the loan period, what effective interest rate will Stewart end up paying on the loan? a. 10.36% b. 11.50% c. 17.44% d. 20.00% e. 21.79%

Q: Which characteristic is not associated with the database approach to data management? a. the ability to process data without the help of a programmer b. the ability to control access to the data c. constant production of backups d. the inability to determine what data is available

Q: Suppose a foreign investor who holds tax-exempt Eurobonds paying 9% is considering investing in an equivalent-risk domestic bond in a country with a 28% withholding tax on interest paid to foreigners. If 9% after-tax is the investor's required return, what before-tax rate would the domestic bond need to pay to provide the required after-tax return? a. 9.00% b. 10.20% c. 11.28% d. 12.50% e. 13.57%

Q: Which characteristic is associated with the database approach to data management? a. data sharing b. multiple storage procedures c. data redundancy d. excessive storage costs

Q: Which of the following is not a problem usually associated with the flat-file approach to data management? a. data redundancy b. restricting access to data to the primary user c. data storage d. currency of information

Q: Which of the following statements is NOT CORRECT? a. Foreign bonds and Eurobonds are two important types of international bonds. b. Foreign bonds are bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is sold. c. The term Eurobond applies only to foreign bonds denominated in U.S. currency. d. A foreign bond might pay a higher nominal interest rate than a U.S. bond. e. Any bond sold outside the country of the borrower is called an international bond.

Q: Which of the following is NOT a reason why companies move into international operations? a. To develop new markets for the firm's products. b. To better serve their primary customers. c. Because important raw materials are located abroad. d. To increase their inventory levels. e. To take advantage of lower production costs in regions where labor costs are relatively low.

Q: The task of searching the database to locate a stored record for processing is called a. data deletion b. data storage c. data attribution d. data retrieval

Q: The interest rate paid on Eurodollar deposits depends on the particular bank's lending rate and on rates available on U.S. money market instruments. a. True b. False

Q: All of the following are basic data management tasks except a. data deletion b. data storage c. data attribution d. data retrieval

Q: LIBOR is an acronym for London Interbank Offer Rate, which is an average of interest rates offered by London banks to smaller U.S. corporations. a. True b. False

Q: The earliest DBAs were based on the hierarchical data model.

Q: The Eurodollar market is essentially a long-term market; most loans and deposits in this market have maturities longer than one year. a. True b. False

Q: The term occurrence is used to describe the number of attributes or fields pertaining to a specific entity.

Q: Data access methods allow records to be located, stored and retrieved. .

Q: A Eurodollar is a U.S. dollar deposited in a bank outside the United States. a. True b. False

Q: Suppose it takes 1.82 U.S. dollars today to purchase one British pound in the foreign exchange market, and currency forecasters predict that the U.S. dollar will depreciate by 12.0% against the pound over the next 30 days. How many dollars will a pound buy in 30 days? a. 1.12 b. 1.63 c. 1.82 d. 2.04 e. 3.64

Q: An entity is any physical thing about which the organization wishes to capture data.

Q: A lockout is a software control that prevents multiple users from simultaneous access to data.

Q: If the inflation rate in the United States is greater than the inflation rate in Britain, other things held constant, the British pound will a. Depreciate against the U.S. dollar. b. Remain unchanged against the U.S. dollar. c. Appreciate against other major currencies. d. Appreciate against the dollar and other major currencies. e. Appreciate against the U.S. dollar.

Q: Time stamping is a control that is used to ensure database partitioning.

Q: Individuals and corporations can buy or sell forward currencies to hedge their exchange rate exposure. Essentially, the process involves simultaneously selling the currency expected to appreciate in value and buying the currency expected to depreciate. a. True b. False

Q: Exchange rate risk is the risk that the cash flows from a foreign project, when converted to the parent company's currency, will be worth less than was originally projected because of exchange rate changes. a. True b. False

Q: A deadlock is a phenomenon that prevents the processing of transactions.

Q: The United States and most other major industrialized nations currently operate under a system of floating exchange rates. a. True b. False

Q: When information system needs arise, users send formal requests for computer applications to the database administrator of the organization.

Q: Suppose one U.S. dollar can purchase 144 yen today in the foreign exchange market. If the yen depreciates by 8.0% tomorrow, how many yen could one U.S. dollar buy tomorrow? a. 155.5 yen b. 144.0 yen c. 133.5 yen d. 78.0 yen e. 72.0 yen

Q: The data dictionary describes all of the data elements in the database.

Q: If the United States is running a deficit trade balance with China, then in a free market we would expect the value of the Chinese yuan to depreciate against the U.S. dollar. a. True b. False

Q: Under the database approach, data is viewed as proprietary or owned by users.

Q: Data normalization groups data attributes into tables in accordance with specific design objectives.

Q: In 1985, a given Japanese imported automobile sold for 1,476,000 yen, or $8,200. If the car still sold for the same amount of yen today but the current exchange rate is 144 yen per dollar, what would the car be selling for today in U.S. dollars? a. $5.964 b. $8,200 c. $10,250 d. $12,628 e. $13,525

Q: Examining programmer authority tables for information about who has access to Data Definition Language commands will provide evidence about who is responsible for creating subschemas.

Q: If the spot rate of the Israeli shekel is 5.51 shekels per dollar and the 180-day forward rate is 5.97 shekels per dollar, then the forward rate for the Israeli shekel is selling at a ____ to the spot rate. a. premium of 8% b. premium of 18% c. discount of 18% d. discount of 8% e. premium of 16%