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This set of International Finance Multiple Choice Questions & Answers (MCQs) focuses on International Finance Set 2
Q1 | An account which is held within a domestic country by a foreign bank, in a currency of domestic country is known as account
- loro
- nostro
- vostro
- swift
Q2 | SBI A/c with HSBC in UK is an example of
- loro
- nostro
- vostro
- swift
Q3 | Inverse quote for USD/DKK 5.7935 - 5.8085 is
- dkk/usd 0.1722 - 0.1726
- usd/dkk 0.1722 -0.1726
- dkk/usd 0.1726 -0.1722
- usd/dkk 0.1726 -0.1722
Q4 | 100 INR/JPY is an indirect quote for
- india
- japan
- us
- china
Q5 | The quote 1 GBP = INR 99.85 is a direct quote for .
- india
- britain
- us
- china
Q6 | In Holgate’s principle, if Bid > Ask, Swap points of forward rate are to be
- added
- subtracted
- multiplied
- divided
Q7 | is the smallest unit by which a currency quotation can change.
- pip
- bid
- ask
- spread
Q8 | If spot USD/INR is 50, and six months forward rate is 51 then AFM is
- 1%
- 4%
- 2%
- 3%
Q9 | is a market where foreign currencies are bought & sold.
- stock market
- forex market
- capital market
- debt market
Q10 | Theory states that the exchange rate between currencies of two countries should be equal to the ratio of the countries price levels.
- irp
- ppp
- fishers
- marshalls
Q11 | If formula I of Fishers effect is positive, borrow and invest in .
- foreign, home
- foreign, foreign
- home, home
- home, foreign
Q12 | is a standardized contract to exchange one currency for another at a
- futures contract
- options contract
- swaps
- forward contract
Q13 | Foreign currency forward market is
- over the counter unorganized market
- organised market without trading
- organised, listed market
- unorganised listed market
Q14 | An option giving the buyer of the option the right to buy but not an obligation to buy a currency is called
- call option
- put option
- forward option
- futures option
Q15 | contacts are bilateral contracts.
- forward
- futures
- options
- swaps
Q16 | bond is issued in a local market by a foreign borrower, denominated in local currency
- foreign bond
- euro bond
- domestic bond
- euro credit
Q17 | bond is issued in a local market by a domestic borrower, usually denominated in local currency
- foreign bond
- euro bond
- domestic bond
- euro credit
Q18 | is a negotiable instrument issued by a US bank, representing non-US company stock, trading on the US stock Exchange.
- adr
- gdr
- idr
- euro bonds
Q19 | is a negotiable instrument issued by an international depository bank, representing a foreign company stock, trading on global stock Exchanges.
- adr
- gdr
- idr
- euro bonds
Q20 | In ADR/GDR process, _ issues depository receipts in foreign markets.
- custodian bank
- depository bank
- issuing company
- lead manager
Q21 | IPO stands for .
- indian profit organisation
- investment & public offerings
- initial prospectus offering
- initial public offering
Q22 | was introduced at a time when forex reserves of the country were low.
- fera
- fema
- gatt
- exim
Q23 | can authorize a person/company to deal in foreign exchange.
- sebi
- rbi
- irda
- parliament
Q24 | frames rules and guidelines for Forex Business in India
- rbi
- sebi
- irda
- fedai
Q25 | If IRR > WACC, then the Project must be
- accepted
- rejected
- discarded
- reviewed