Q.1
International Finance Analyzes the following areas of study:
  • Optimum currency area theory
  • Mudell-Flemig Model
  • Interest Rate Parity
  • All of the Above
Q.2
An invoice is issued by the seller to the buyer.
  • True
  • False
Q.3
A bill of lading is issued by the seller (exporter) evidencing shipment of goods.
  • True
  • False
Q.4
A Malaysian exporter is allowed to issue invoice in Ringgit Malaysia to the importer in China and in return receives payment in Ringgit Malaysia from China.
  • True
  • False
Q.5
The difference between bid and offer rates is called a premium.
  • True
  • False
Q.6
Under documentary collection, the buyer's bank guarantees payment to the seller.
  • True
  • False
Q.7
Which of the following was instrumental in creating the global economy that exists today?
  • The use of high taxes for imports and exports
  • Improvements in technology such as the Internet
  • The creation of one form of currency (money) used to trade
  • The success of the Communist governments in guiding trade
Q.8
Trust Receipt is a financing available to importers (buyers) only.
  • True
  • False
Q.9
A "clean" bill of lading shows that the goods have been received by the buyer in good condition.
  • True
  • False
Q.10
Which Incoterm applies when the seller's obligations end once the goods are packed for transportation?
  • FOB
  • CIF
  • EX-WORKS
Q.11
When the economy of two countries depend on each other, it's called:
  • economic interdependence
  • multinational cooperation
  • isolationism
  • outsourcing
Q.12
When people trade how do both sides benefit?
  • Countries can focus on producing specific goods from their natural resources instead of trying to create everything they need
  • Countries can take advantage of each other making the international market more secure
  • Countries are able to learn the weaknesses of other countries and exploit those for natural resources
  • Countries are able to enter other countries with spies and foreign agents to undermine governments.
Q.13
What is globalization?
  • The increased flow of trade, people, technology, and culture among countries.
  • The decreased flow of trade, people, technology, and culture among countries.
  • The creation of one global empire and government under a single super power.
  • The creation of a global cellular network to use phones internationally.
Q.14
What would be one consequence of a prolonged decline in the value of the euro relative to the U.S. dollar?
  • European exports to the United States would become less expensive.
  • U.S. exports to Europe would become cheaper.
  • European imports from the United States would increase.
  • U.S. imports from Europe would become more expensive.U.S. imports from Europe would become more expensive.
Q.15
Cash Rate is ______
  • T+0
  • T+2
  • T+3
  • T+1
Q.16
_____ investor makes risk free profit.
  • Hedger
  • Speculator
  • Arbitrageur
  • Bull
Q.17
_______declared that USA will not accept BWS.
  • Nixxon
  • Ronald Regan
  • Donald Trump
  • Barack Obama
Q.18
Two institutes created with BWS are ___________
  • IMF
  • World Bank
  • Asian Development Bank
  • Both A & B
Q.19
Dirty Float is also called as _______
  • Fixed Exchange Rate
  • Floating Exchange Rate
  • Managed Float
  • Clean Float
Q.20
Bid Rate is a rate at which Bank _________
  • Sells
  • Negotiates
  • Trades
  • Buys
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