(2 points) International Monetary System Contrast the basic features of the gold standard and the Bretton Woods system of exchange rate regimes with respect to how exchange rates are set and the reserve assets.

(10 points) International Capital Budgeting You work for an Israeli company that is considering an investment in China’s Sichuan province. The investment yields expected after-tax Chinese new yuan cash flows (in millions) as follows:    Expected inflation is 6% in shekels and 3% in yuan. Required returns for this risk-class are iILS = 15% in Israeli shekels and iCNY = 11.7% in yuan. The spot exchange rate is S0 ILS∕CNY = ILS 0.5 ∕ CNY. Assume the international parity conditions hold.   a. (4 points) Compute the expected future exchange rate for Year 1, 2, and 3.   b. (4 points) Calculate NPV from the parent’s perspective by converting yuan into shekels at expected future spot rates and then discounting at the appropriate rate in shekels.     0 1 2 3 FCF_China         Exchange Rate (ILS/CNY)         FCF_Israel           Discount rate   NPV (ILS)     c. (1 point) What is the IRR of the project? d. (1 point) Should the management accept this project? Why?

(12 points) Exchange Rates       In the Financial Times you see the following exchange rate quotes.   spot 360 day forward CAD/ USD 1.7450 1.7475 USD/£ 1.6835 1.6865   a. (2 points) Which quote is in “American terms” and which quote is in “European terms”?     b. (2 points) Determine the cross rate (as £/CAD) consistent with no triangular arbitrage.     c. (2 points) Suppose you could trade 0.3568 £ for 1CAD. Can you make a profit via triangular arbitrage? Why?     d. (4 points) Describe how you would exploit it. You should identify the direction of transactions and determine the profit from running $1 million through this cycle.     e. (2 points) Determine the forward premium for the £ in terms of the US$. Explain whether the foreign currency is expected to appreciate or depreciate against the U.S. dollar.

When assuming that investors in the U.S. are most concerned with their exposure to the U.S. stock market, it is acceptable to use the U.S. market when measuring a U.S.-based MNC’s project’s beta.

During World War II, more than a half million _________ left the South because of better job opportunities in other parts of the United States, especially the West.

Which of the following contain enzymes used in the breakdown of glucose and generation of ATP in eukaryotes?

The phospholipid molecules that create the plasma (cell) membrane bilayer have

LABELING: Match the following structures and/or cell envelopes to their proper name.

Gram-negative bacteria ___(1)___ an outer membrane and are ___(2)___ to many toxic substances.

A scraping of material from a person’s tooth revealed many bacteria found on the tooth surface.  Such bacteria remain attached to the tooth surface by structures called