Hi do you have answers to the course International Financial Finance on your website? This is my homework 1)

Question

Hi, do you have answers to the course International Financial Finance on your website? This is my homework: 1)

Asymmetric information is a form of

A) market imperfection.

B) regulatory arbitrage.

C) capital market liberalization.

D) financial sector deregulation.

2) Problems resuing from market imperfections include

A) adverse selection.

B) herding behavior.

C) moral hazard.

D) all of the above.

3) If a government implements regulations that lead firms to produce at levels of output different from the economically efficient output, then

A) the government should implement capital market liberalization to resolve the problem.

B) the IMF should be allowed to intervene.

C) the regulation suffers from asymmetric information.

D) this is called policy-created distortions.

4) When firms choose to produce aboard instead of domestically, it may be the resu of

A) herding behavior.

B) regulatory arbitrage.

C) moral hazard.

D) IMF intervention.

5) Portfolio capital flows tend to be

A) part of an overall, longer term investment strategy.

B) shorter term in nature.

C) involved in acquiring ownership positions in excess of 10%.

D) detrimental to the development of a nation’s financial sector.

6) A legal restriction on the movement of assets denominated in foreign currencies into and out of a nation is called

A) a private capital flow constraint.

B) stabilizing FDI.

C) a capital control.

D) a hot money flow.

Finance