Two international bonds are identical in maturity, coupon rate, currency of denomination, and issuer credit quality. Bond A trades in a deep and consistently active secondary market, while Bond B rarely trades. At issue, Bond B will most likely have to offer a …… yield than Bond A, in order to compensate investors for ……

The standard deviation of an exchange rate, which is a measure of its volatility, tends to be …… when measured from annual data than when measured from monthly data.

Assume that the Japanese government relaxes its controls on imports by Japanese companies. How should this move affect the U.S. demand for Japanese yen, the supply of yen for sale, and the equilibrium value of the yen, other things being equal?

____ is not a factor that affects the bid/ask spread.

Agency costs tend to be …… for MNCs than for purely domestic firms, largely because ……

Why do non-U.S. firms list their shares on U.S. stock exchanges?

The financially riskiest method(s) by which firms conduct international business is (are):

Quote competitiveness, speed of execution, forecasting advice, and advice about current market conditions are all bank characteristics that matter to customers in need of foreign exchange. A U.S. importer must convert $50 million into euros within the hour to meet a contractual payment deadline, and every bank it has approached is quoting essentially the same rate. In this particular situation, the characteristic that matters MOST is …… and the one that matters LEAST is ……

Participants in foreign exchange markets include all of the following except:

Factors that affect exchange rates between two countries include