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This set of International Finance Multiple Choice Questions & Answers (MCQs) focuses on International Finance Set 4

Q1 | FDI Stands for _____________
  • Foreign Direct Intermediation
  • Foreign Domestic Investment
  • Foreign Direct Investment
  • Foreign direct Investment
Q2 | Bretton woods is a town in _________________ in US
  • Boston
  • Seattle
  • Hampshire
  • Denver
Q3 | G -10 Countries included all of the following, except ____________
  • Belgium
  • Canada
  • France
  • China
Q4 | Under _______ monetary unit is associated with the value of circulating gold coins.
  • Gold Specie
  • Gold Exchange
  • Gold Bullion
  • Silver
Q5 | Under ____________ there is no interference of monetary authorities to decideexchange rate.
  • Fixed
  • Floating
  • Both of these
  • Fixing
Q6 | In Smithsonian Agreement, the variation zone was increased from 1% to____________ %’
  • 2.25
  • 2.5
  • 2.15
  • 2.35
Q7 | In ____________ president Nixon announced that dollar would no longer beconvertible into gold.
  • 1944
  • 1945
  • 1970
  • 1971
Q8 | During BWS, value of USD was fixed at 1-ounce gold is equal toUSD______________
  • 25
  • 30
  • 45
  • 35
Q9 | Euro is official currency of _____ member states.
  • 25
  • 28
  • 19
  • 18
Q10 | In Spot market, exchange of currencies take place on ___________
  • T +1
  • T+2
  • T+0
  • T+4
Q11 | An account which is held within a domestic country by a foreign bank, in the currency of domestic country _________________
  • Loro
  • Nostro
  • Vostro
  • SWIFT
Q12 | SBI Account with HSBC in Uk is an example of ___________
  • Loro
  • Nostro
  • Vostro
  • SWIFT
Q13 | Spot rate is also called as ________________
  • Future Price
  • Forward Price
  • Swap Price
  • Current Market Price
Q14 | Inverse quote for “1GBP = 99.1100/9900 INR is INR GBP____________
  • 0.0101/0.0100
  • 0.0100/0.0105
  • 0.0105/0.0100
  • 0.0100/0.0101
Q15 | If USD SGD 1.5423/33; SGD GBP 0.3323/33; GBP USD quotation is__________________
  • 1.9512/444
  • 1.9441/512
  • 1.9444/512
  • 1.9512/441
Q16 | 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
Q17 | Holgate principle, if bid > Ask, Swap points for forward rate are to be_________
  • Added
  • Subtracted
  • Multiplied
  • Divided
Q18 | _________ is the smallest unit by which a currency quotation can change.
  • PIP
  • Bid
  • Ask
  • Spread
Q19 | _________ deal in currencies to benefit from movements in currency exchangemarkets.
  • Arbitrageurs
  • Hedgers
  • Speculators
  • Spread
Q20 | Currently the largest foreign exchange market in the world is ____________-.
  • New York
  • Tokyo
  • Frankfurt
  • London
Q21 | __________ is real time gross settlement funds transfer system operated by the Unitedstates Federal reserve banks.
  • Swift
  • Chips
  • Chaps
  • Fedwire
Q22 | Spot used INR 60- and six-months forward is USD INR 61.AFM is ____________
  • 3.33%
  • 1.13%
  • 2.33%
  • 4.33%
Q23 | SWIFT stands for ____________
  • System of World Interbank Financial Transportation
  • Society wide interest & financial telecommunications
  • Society for worldwide interbank Financial transportation
  • Society for Worldwide interbank Financial Tr
Q24 | _________ is market where foreign currencies are bought and sold.
  • Stock Market
  • Forex Market
  • Capital Market
  • Debt Market
Q25 | _________ theory states that the exchange rate between currencies of two countriesshould be equal to the ratio of the countries price levels.
  • IRP
  • PPP
  • Fisher`s
  • T Bills