Pop Quiz FIN 40500: International Finance

Question #1 – an easy one! What is the official currency of Germany? The Euro When was the Euro introduced and what the official German currency before the Euro? Germany used the Deutsche Mark until January 1 st 2002 when Euro notes/coins were put into circulation (the Euro transition began in 1999) – DM = 1 Euro

Question #2 – membership has its privileges! Name the Euro Countries (hint: there are 12) Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain Will Join…. (2007 Slovenia (2008) Estonia, Cyprus, Latvia, Malta (2009) Slovakia, Lithuania (2010) Czech Republic, Hungary (2011) Poland (Not Before 2012) Sweden (???) Bulgaria, Romania

Question #3 – Do you know your current events? What is the Euro currently trading at and what has the EUR/USD history been? Currently, 1 Euro = U.S. dollars After hitting an all time high against the Euro in October 2000 (.8525 dollars per Euro), the dollar has been on a steady decline

Question #4 –Ready for the “Big Time”? Name the six most widely traded currencies (also know as “The Majors”) in order of trading volume US Dollar (USD) Euro (EUR) Japanese Yen (JPY) British Pound (GBP) Swiss Franc (CHF) Canadian Dollar (CAD) How about #7?Australian Dollar (AUD)

Question #5 – Do you REALLY know your currencies? Name each country’s currency… Israel Iran N. KoreaCubaChina ShekelRialWonPesoYuan Renminbi Ready for a REAL Challenge? Venezuela Sweden ThailandSaudia ArabiaIndia BolivarKronaBahtRiyalRupee

Question #6 – International Business Name the top five multinational companies in terms of foreign assets General Electric: $229B ($575B Total) Vodaphone: $207B ($232B Total) Ford: $165B ($295B Total) British Petroleum: $121B ($159B Total) General Motors: $107B ($370B Total)

Question #7 – Monkey See, Monkey Do Saudi ArabiaPolandChad EcuadorSenegalBrazil SyriaBosniaColumbia PanamaMali South Africa UkraineNigerTurkey Match Each Group of Countries to the Currency to which it is tied Neither

Question #8 – Currency Market Players Name the 5 largest companies (in terms of overall market share) in the foreign exchange market (combined, they comprise HALF the market!!!) Deutsche Bank: 17% UBS: 12.5% Citigroup: 7.5% HSBC: 6.5% Citigroup: 6.0%

Question #9 – Do you want fries with that? Rank the following cities in terms of the average cost of fast food. LondonTokyoRomeParisLos Angeles LondonTokyoRomeParisLos Angeles $19.49$31.99$23.65$17.37$13.11 How about a bottle of aspirin? $3.37$2.42$3.23$3.59$4.53

Question #10 – Currency Risk How would you rank the following industries in terms of the amount of currency risk they face? Aerospace Motor Vehicles Crude Oil/Petroleum Tobacco Pharmaceuticals