Q.1
What is the main reason for shifting profits from one country to another country?
  • To benefit from a difference in tax rates
  • To avoid double taxation
  • To benefit from investment opportunities
  • To increase overall pre-tax profits
Q.2
Which choice is classified as political risk factors?
  • Currency Inconvertibility
  • Corruption
  • War
  • All Of above
Q.3
Why firms pursue international business?
  • To seek comparative advantage
  • To avoid market restriction
  • To achieve new market target
  • All Of above
Q.4
Which one is classified as 'capital' in financial term?
  • Equity
  • Trading
  • Working capital
  • All Of above
Q.5
Which of the following is not the purposes of international financial management?
  • It is closely related to other activities in an organization such as asset management, marketing management, or human resource management.
  • It helps managers to plan and estimate reasonable costs for situations that arise in the future.
  • It assures the sustainable management of resources globally.
  • It will help businesses easily find new sources of profits such as investment in equity and loans.
Q.6
What is the simplest type of exchange exposure?
  • Transaction exposure
  • Translation exposure
  • Economic exposure
Q.7
Which one is an example of human risk?
  • A teller accidentally gives an extra $50 bill to a customer
  • Borrowers default on a principal or interest payment of a loan
  • Computer hacking
  • A large number of depositors withdraw their deposits at bank
Q.8
Which one is an example of human risk?
  • A teller accidentally gives an extra $50 bill to a customer
  • Borrowers default on a principal or interest payment of a loan
  • Computer hacking
  • A large number of depositors withdraw their deposits at bank
Q.9
The technique that relies on computer modeling of different scenarios and computation of the results of those scenarios on bank’s portfolio is
  • Stress Testing
  • Value at Risk (VaR)
  • Altman's Z Score model
  • The Standardised Approach
Q.10
What type of risk that occurs from the failure of borrowers to make required payments on loans?
  • Liquidity risk
  • Credit risk
  • Operational risk
  • Market risk
Q.11
There are more than two parties in multilateral netting
  • True
  • False
Q.12
Which ratio below is used to measure financial leverage?
  • Fixed costs / Variable costs
  • Sales / Total assets
  • Debt / Equity
  • Current assets / Long-term assets
Q.13
What is the most important activity among the cash flow sources?
  • Investment activity
  • Operating activity
  • Financing activity
  • None of above
Q.14
Equity comes from:
  • Bond issues
  • Loans
  • Receivables
  • None of above
Q.15
Who is the player in foreign exchange market?
  • Commercial banks
  • Retailers
  • Wholesalers
  • Workers
Q.16
Which one is not the international trade flows?
  • Regional trade bloc
  • Trade agreements
  • Tariffs
  • Exports and imports
Q.17
The bank account of a non-resident of a country, where the amount of currency in the account cannot be transferred to another country is called as
  • Nostro account
  • Blocked Account
  • Foreign account
  • Capital account
Q.18
Exchange rate between currency A and currency B, given the values of currencies A and B with respect to a third currency is known as
  • Golden standard
  • Flexible exchange rate
  • Fixed exchange rate
  • Cross exchange rate
Q.19
Agreement to exchange one currency for another at a specified exchange rate and date is
  • Currency swap
  • Swap points
  • Currency put option
  • Currency call option
Q.20
Long-term securities denominated in two currencies is called as
  • Euro bond
  • Dual currency bonds
  • Foreign bonds
  • Euro dollar deposit
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