Q.1
Foreign exchange transactions involve monetary transactions
  • among residents of the same country
  • between residents of two countries only
  • between residents of two or more countries
  • among residents of at least three countries
Q.2
An operation in order to protect the domestic currency value of an asset or a liability that is denominated in foreign currency is called as
  • Hedging
  • Hermes
  • Indexation
  • Leading
Q.3
Difference between buying and selling rates in an exchange rate or interest rate quotation is known as
  • Strike price
  • Spread
  • Swap points
  • Spot rate
Q.4
Which exchange rate theory focuses on the inflation exchange rate relationship?
  • Interest rate parity
  • International Fisher Effect
  • Purchasing power parity
  • Traditional Model
Q.5
The exchange rate prevailing at a financial reporting date
  • Closing exchange rate
  • Opening exchange rate
  • Fixed exchange rate
  • Fluctuating exchange rate
Q.6
International Finance Corporation established in
  • 1956
  • 1960
  • 1966
  • 1970
Q.7
The maximum amount that an Indian company can issue as ADR/GDR in a year is
  • USD 500 million
  • USD 30 million
  • USD 20 million
  • No monetary ceiling
Q.8
A contract that gives the buyer the right to buy commodity or a foreign currency from the seller at a fixed price is called as
  • put option
  • call option
  • cross option
  • currency swap
Q.9
SIBOR refers to
  • static interest bonds offered rate
  • Singapore international bonds offered rate
  • simple interest bearing offshore rate
  • Singapore interbank offered rate
Q.10
The market where long term securities (shares, bonds, etc. are bought and sold is called as
  • money market
  • capital market
  • primary market
  • secondary market
Q.11
A bank located usually in another country that provides service for another bank is
  • Foreign bank
  • Central bank
  • Correspondent bank
  • World Bank
Q.12
The price at which a market maker is prepared to sell a currency or lend money
  • forward rate
  • sport rate
  • bid rate
  • offer rate
Q.13
The price at which a market maker is prepared to buy a currency or borrow money is termed as
  • spot rate
  • bid rate
  • ask price
  • forward rate
Q.14
A deposit or borrowing domiciled outside the home country of the currency is called as
  • foreign bond
  • euro bond
  • euro currency
  • domestic bond
Q.15
The system operated by the WTO is known as the
  • multilateral trading system
  • bilateral trading system
  • ratified system
  • ungratified system
Q.16
Bretton woods agreement arrived at in
  • 01-07-94
  • 01-07-54
  • 31-06-60
  • 01-06-64
Q.17
The spot exchange rate __________
  • is the rate today for exchanging one currency for another for immediate delivery
  • is the rate today for exchanging one currency for another at a specific future date
  • is the rate today for exchanging one currency for another at a specific location on a specific future date
  • is the rate today for exchanging one currency for another at a specific location for immediate delivery
Q.18
Which organisation of the World Bank Group deals with matters related to the development of the poorest countries in the world?
  • The International Bank for Reconstruction and Development
  • The International Development Association
  • The International Finance Corporation
  • The Multilateral Investment Agency
Q.19
India s foreign exchange rate system is?
  • Fixed target
  • Managed float
  • Free float
  • Fixed and Float
Q.20
The index of Financial Inclusion has been launched for the first time in 2008
  • Confederation of Indian Industries (CII)
  • Federation of Indian Chamber of Commerce and Industry (FICCI)
  • National Council of Applied Economic Research (NCAER)
  • Indian Council for Research on International Economic Relations (ICRIER)
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