Multiple choice

1. The Euro eliminated exchange costs and exchange rate fluctuations. 

TRUE 

FALSE

2. The foreign exchange market is like the New York Stock Exchange because they are both physical entities.

TRUE

FALSE

3. The goal of the firm should be the maximization of profit. 

TRUE

FALSE

It should be FALSE. The goal of the firm should be maximization of shareholder wealth.

4. For the risk-averse financial manager, the more risky a given course of action, the higher the expected return must be. 

TRUE

FALSE