Q.1
The most liquid asset among the following is?
  • Gold
  • Share
  • Cash
  • Land
Q.2
The forward 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.3
Which of the following is not an example of an international trade draft?
  • Time draft
  • Sight draft
  • Both the first and second answers are correct
  • Usance draft
Q.4
The first Indian company raised the fund by issuing Bond in US dollar in United States
  • Airtel
  • TATA
  • Reliance
  • Aircel
Q.5
A group of European countries have formed a union and created a common currency known as __________
  • the EU currency
  • the European Union
  • the EMU
  • the Euro
Q.6
This is not established method of translation
  • Current rate method
  • Monetary/Non-monetary method
  • Temporary method
  • Current/Non-current method
Q.7
Two tier exchange rate system is a form of
  • Different exchange rate
  • Fixed rate
  • Multiple exchange rate
  • Flexible rate
Q.8
Which of the following is not a reason for international investment?
  • To provide an expected risk-adjusted return in excess of that required
  • To gain access to important raw materials
  • To produce products and/or services more efficiently than possible domestically
  • International investments have less political risk than domestic investments
Q.9
The __________ is especially well suited to offer hedging protection against transactions risk exposure
  • forward market
  • spot market
  • transactions market
  • inflation-rate market
Q.10
For the purpose of translation exposure, historical rate is the rate prevalent on the date
  • The parent company was established
  • The foreign subsidiary was established
  • The investment in the subsidiary was made by the parent company
  • The asset was acquired or the liability was incurred
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