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CA Final International Financial Management — practice questions — page 2

Explore 46 free International Financial Management questions in CA Final Strategicfinancialmanagement. Open each question or exercise to read its content, reference answers and available explanation.

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International Financial Management questions and exercises with answers

Showing questions 31–46 of 46.

A privately placed ADR under SEC Rule 144A may be issued only to which investors?Read the answer and worked solution →Regulation S ADRs cannot be held or traded by whom?Read the answer and worked solution →A global depository receipt (GDR) is the global equivalent of which instrument?Read the answer and worked solution →What voting right do holders of a GDR carry?Read the answer and worked solution →On which exchange are GDRs often listed and traded through the International Order Book?Read the answer and worked solution →A eurobond is denominated in a currency that is what?Read the answer and worked solution →A bond issued in Japanese yen outside Japan is called what?Read the answer and worked solution →The first eurobonds were issued in 1963 by which Italian borrower?Read the answer and worked solution →The eurobond market was traditionally centred in which city?Read the answer and worked solution →Eurobonds arose partly as a reaction to which US measure from the 1960s?Read the answer and worked solution →Which two depositories hold most eurobonds?Read the answer and worked solution →Purchasing power parity is based on which principle?Read the answer and worked solution →Why does PPP use a basket of goods rather than a single good?Read the answer and worked solution →Compared with the PPP exchange rate, the market exchange rate is generally what?Read the answer and worked solution →Which statement describes relative PPP?Read the answer and worked solution →Which international unit is a well-known purchasing power adjustment?Read the answer and worked solution →

Worked practice questions

A privately placed ADR under SEC Rule 144A may be issued only to which investors?

  1. Qualified institutions only
  2. Any retail investor
  3. Only the issuer's staff
  4. Only commercial banks
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Correct answer: A. Qualified institutions only

Rule 144A makes the issue a private placement restricted to qualified institutional buyers.

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Regulation S ADRs cannot be held or traded by whom?

  1. Any offshore investor
  2. Any U.S. person
  3. Any institution
  4. Any foreign bank
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Correct answer: B. Any U.S. person

Regulation S shares are issued to offshore non-US residents and may not be held by a 'U.S. person'.

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A global depository receipt (GDR) is the global equivalent of which instrument?

  1. Eurobond issue abroad
  2. American depositary receipt
  3. Treasury bill program
  4. Convertible debenture
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Correct answer: B. American depositary receipt

GDRs are the global counterpart of the original ADRs on which they are based.

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More Strategicfinancialmanagement topics

Mergers Acquisitions and Corporate RestructuringBusiness ValuationCapital BudgetingForeign Exchange Exposure and Risk ManagementInterest Rate RiskModern Portfolio TheoryPortfolio ManagementValuation (Finance)