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This set of International Finance Multiple Choice Questions & Answers (MCQs) focuses on International Finance Set 3
Q1 | is known as Benefit/cost ratio
- profitability index
- pay back period
- npv
- irr
Q2 | Lower the better applies to method of Capital budgeting
- npv
- pay back period
- irr
- profitability index
Q3 | is not a type of foreign exchange risk.
- transaction risk
- translation risk
- economic risk
- natural risk
Q4 | All are methods of Internally managing foreign exchange risk except, .
- exposure netting
- leading & lagging
- denomination in local currency
- forward contract
Q5 | If two banks are quoting the following GBP rates: Bank A : Rs 78.9810 - 79.1110 and Bank B : Rs 79. 0110 - 79.2350. The arbitrage opportunity will be .
- 100
- 0
- 124
- 142
Q6 | When a company has receipts & payments in the same foreign currency due at the same time, it can use technique of managing foreign exchange risk.
- risk sharing agreement
- leading
- lagging
- exposure netting (matching)
Q7 | An investor looking at reducing his risk is known as .
- speculator
- hedger
- arbitrageur
- trader
Q8 | analyses if the benefits will justify the project cost/investment done.
- economic analysis
- technical analysis
- managerial analysis
- market analysis
Q9 | Spot USD/INR is 60.5600/60.5700 and one month SWAP points are 600/700 then outright forward rate will be .
- 60.6200/60.6400
- 60.6400/60.6200
- 61.1600/61.2700
- 61.2700/61.1600
Q10 | Spot CHF/DEM rate is 0.7865/78 and one month forward points are 25-20 then what will be the one month forward CHF/DEM quote
- 1.0365 - 0.9878
- 0.7890 -0.7898
- 0.5365 - 0.5878
- 0.7840 - 0.7858
Q11 | The world’s major trading currencies, which are a free to float against each other,include all of the following except__________________
- British Pound
- Japanese Yen
- US Dollar
- Spanish Peso
Q12 | National that have major economic expansion attract _____________________
- Imports
- Exports
- FDI
- Privatization
Q13 | IMF stands for ____________
- International Monetary Fund
- Indian Monetary Fund
- International Monetary Finance
- Indian Monetary Finance
Q14 | In the foreign exchange market, the _______________ of one country is traded for the________________of another country.
- Currency, Currency
- Currency, Financial instruments
- Currency goods
- Goods Goods
Q15 | Systematic record of economic transaction of a country during a given period of time is_______________--
- ADR
- BOP
- GDR
- IFRS
Q16 | Funs based services includes all of the following except _______________-
- Bill discounting
- Factoring
- Lease Financing
- M & A Services
Q17 | _________ deals with the global rules of trade between nations.
- WTO
- IFC
- IBRD
- World Bank
Q18 | Exchange rate is the __________________
- Opportunity cost at which goods are produced domestically
- Balance of trade ratio of one country to another
- Price of one country’s currency expressed in terms of another country’s currency
- Amount if currency that can be purchased with 1ounce of gold
Q19 | Current account includes all of the following except _______________-
- Merchandise Balance
- Service Balance
- FDI
- Unilateral Transfers
Q20 | Reserves are held in following forms, except __________________
- Foreign Currency
- Gold
- SDR
- Silver
Q21 | Statistical residue is a part of ____________________
- Errors and Omissions
- Current Account
- Capital Account
- Reserve Account
Q22 | Difference between the value of merchandise exports and imports is____________________
- BOP
- BOT
- Capital Account
- Official Reserve Account
Q23 | Sale or purchase of gold in BOP is covered under _____________________
- Capital Account
- Current Account
- Official Reserve Account
- Balancing Items
Q24 | SDR is an international reserve asset created by_____________________
- IMF
- WTO
- World Bank
- IBRD
Q25 | FDI in Bop is covered under ________________
- Capital Account
- Current Account
- Official Reserve Account
- Balancing items