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Q.1
Which of the following institutions cannot be included in the international financial and monetary system?
WTO
Bank for International Settlements
IMF
World Bank
Q.2
The intrinsic value of a Call option is
Strike price - Underlying Price
Underlying price - Strike Price
Strike price > Underlying price
Strike price < Underlying price
Q.3
India s foreign exchange rate system is?
Fixed target
Managed float
Free float
Fixed and Float
Q.4
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)
Q.5
The most liquid asset among the following is?
Gold
Share
Cash
Land
Q.6
Purchasing-power parity (PPP) refers to__________
the concept that the same goods should sell for the same price across countries after exchange rates are taken into account
the concept that interest rates across countries will eventually be the same
the orderly relationship between spot and forward currency exchange rates and the rates of interest between countries
the natural offsetting relationship provided by costs and revenues in similar market environments
Q.7
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.8
This is not established method of translation
Current rate method
Monetary/Non-monetary method
Temporary method
Current/Non-current method
Q.9
The cost of hedging through option includes
Option premium
Interest on option premium till due date of the contract
Both a and b
optimum premium and difference between option price and spot price
Q.10
Under the interest rate option, the buyer
Avoids unfavourable movement in interest rates
Gains from favorable movement in interest rates
Both a and b
Gains nothing, only the seller gains
Q.11
Bretton woods agreement arrived at in
01-07-94
01-07-54
31-06-60
01-06-64
Q.12
In India currency-notes issue system is based on
Proportional Reserve System
Minimum Reserve System
Fixed Exchange Rate System
Fully Convertibility System
Q.13
Cash and carry arbitrage explains the determination of
Forward Rates for currencies
Spot rates for currencies
Both forward and spot rates for currencies
Penalty for non-execution of forward contracts
Q.14
International Monetary Fund is headquartered in
Washington, United States
New York City, United States
Geneva, Switzerland
Avenue Du Mont Blanc, Switzerland
Q.15
Which of the countries did not become a member of the Economic and Monetary Union as on Jan 1 1999.
Britain
France
Germany
Italy
Q.16
Bond issued simultaneously in several global financial center is
Domestic Bond
Foreign Bond
Global Bond
Euro Bond
Q.17
The operating risk in the host country does not include the risk of.
change in the government policies
exchange control
price control
sanctions
Q.18
Two tier exchange rate system is a form of
Different exchange rate
Fixed rate
Multiple exchange rate
Flexible rate
Q.19
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.20
Foreign currency exposures can be avoided by
Entering into forward contracts
Denominating the transaction in domestic currency
Exposure netting
Maintaining foreign currency accounts
Q.21
Forward contract is an agreement to buy or sell an assets on
Specified price
Specified time
Specified date
Specified volume
Q.22
An interest rate cap is a series of
Call options
Put options
Periodical payments
Differential payments
Q.23
FRAs can’t be used for
Hedging
Arbitraging
Speculating
Any of the Above
Q.24
European Economic Community founded in
1957
1958
1963
1968
Q.25
The following statement with respect to currency option is wrong
Call option will be used by exporters
Put option gives the buyer the right to sell the foreign currency
Foreign currency- Rupee option is available in India
An American option can be executed on any day during its currency
Q.26
The margin for a currency future should be maintained with the clearing house by
The buyer
The seller
Both the buyer and the seller
Either the buyer or the seller as per the agreement between them
Q.27
IMF is firm of
190 Member Countries
182 Member Countries
186 Member Countries
183 Member Countries
Q.28
In a quote exchange rate, the currency that is to purchase with another currency is called
Liquid currency
Foreign Currency
Local Currency
Base currency
Q.29
Which of the following theories suggests that firms seek to penetrate new markets over time?
Theory of Comparative Advantage
Imperfect Market Theory
Product cycle theory
None of the above
Q.30
Which exchange commenced trading in currency in 1982
Philadelphia
Mexican peso
Bimsetallism
Smithsonian
Q.31
The major players in the foreign exchange market are.
commercial banks
corporates
exchange brokers
central bank of the country and the Central Government
Q.32
The world’s four major trading currencies are all free to float against each other. They include all the following except.
The British Pound
The Japanese Yen
The Spanish Peso
The US Dollar
Q.33
The forward market is especially well-suited to offer hedging protection against.
translation risk exposure
transactions risk exposure
political risk exposure
taxation
Q.34
Market value size of outstanding instruments of capital markets depends on factors
primary cash flows
number of issued securities
market prices of securities
both b and c
Q.35
Foreign Exchange Regulation Act was replaced with The Foreign Exchange Management Act in the year.
1973
1994
1999
1995
Q.36
The common types of Intellectual property include.
Copyrights and trademarks
Patents and industrial design rights
Trade Secrets
All of the above
Q.37
The apex body of the Export Promotion organizations is:
EPC
Commodity Boards
FIEO
IIFT
Q.38
The period of time permitted for the fulfillment of the export obligation under EPCG is
5 years
8 years
7 years
10 years
Q.39
The legal settlement of international trade disputes is.
Negotiation
Arbitration
Litigation
Conciliation
Q.40
The __________ is especially well suited to offer hedging protection against transactions risk exposure
forward market
spot market
transactions market
inflation-rate market
Q.41
International Financial Corporation established in the year
1948
1952
1962
1956
Q.42
Euro is the official currency of
All the States of Europe
All the states of European Union
Only 12 of the states of European Union
Only 10 of the States of European Union
Q.43
The tenure of the Foreign Trade policy is
3 years
5 years
1 year
7 years
Q.44
The threshold limit for the handloom industry as per the recent EXIM policy is:
500 crores
350 crores
250 crores
100 crores
Q.45
US Dollar denominated bond issued in US domestic Market
Yankee Bond
Bull dog Bond
Samurai Bond
Dual Bond
Q.46
Derivatives can be used by an exporter for managing.
currency risk
cargo risk
credit risk
business risk
Q.47
Derivatives are so called because
they are subsidiary products in the market
they are derived from combination of different assets
their value is dependent on the value of some other fundamental variable
they are traded on derivative exchanges
Q.48
Not a profit maximizing business is
International Monetary Fund
International bank for Reconstruction and Development
International Financial Corporation
World Trade Organisation
Q.49
Gifts and Relief are
Merchandise Payment
Service Payment
Factory Income
Transfer payment
Q.50
The euro is the name for
a currency deposited outside its country of origin
a bond sold internationally outside of the country in whose currency the bond is denominated
a common European currency
foreign currencies deposited in home country
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