International Finance Set 6

Bachelor of Management Studies (BMS)

Practice Mode Previous Next
On This Page

This set of International Finance Multiple Choice Questions & Answers (MCQs) focuses on International Finance Set 6

Q1 | As per FEMA, no person, other than ________ would enter in any transactions of theforeign currency.
  • Offshore banks
  • Parliament
  • Government
  • Authorized Dealer
Answer: Authorized Dealer
Q2 | The monetary penalty payable under FERA was nearly ___________times the amountinvolved.
  • Three
  • Five
  • Two
  • Six
Answer: Five
Q3 | __________ implies investment made with an intent of obtaining an ownership stake inan enterprise domiciled in a country by an enterprise situated in some other country.
  • FDI
  • FPI
  • Two
  • Six
Answer: FPI
Q4 | RBI has granted license to certain established firms, hotels and other organizations permitting them to deal in foreign currency notes, coins and travelers’ cheques. They are termed as ___________
  • Authorized Banks
  • Authorized Dealers
  • Authorized Money changers
  • Authorized shopkeeper
Answer: Authorized Money changers
Q5 | FEDAI stands for _____________
  • Foreign Exchange dealers act of India
  • Foreign Exchange direct association of India
  • Foreign exchange dealers association Index
  • Foreign exchange dealers association of India
Answer: Foreign exchange dealers association of India
Q6 | ____________ can authorize a person / company to deal in foreign exchange.
  • SEBI
  • RBI
  • IRDA
  • Parliament
Answer: RBI
Q7 | __________ is the process of analyzing and ranking proposed projects to determinewhich ones deserving of an investment.
  • IPO
  • Debt financing
  • Capital Budgeting
  • Budgeting
Answer: Capital Budgeting
Q8 | Walmart opening a new retail outlet is an example of _______________ project.
  • Expansion
  • Regulatory
  • Replacement
  • R & D
Answer: Expansion
Q9 | Net amount of all cash flowing in and out of the business, from all sources is____________ cash flow.
  • Incremental
  • Total
  • Terminal
  • Capital budgeting
Answer: Total
Q10 | _________ are the initial outlays required to analyse a project that cannot be recoveredeven if a project is accepted.
  • Opportunity cost
  • Externally
  • Cannibalization
  • Sunk cost
Answer: Sunk cost
Q11 | ___________ means transfer of corporate money from a foreign country back to itshome country.
  • Repatriation
  • Capital Budgeting
  • Withholding
  • Holding
Answer: Repatriation
Q12 | Lower the better applies to ___________ capital budgeting method.
  • NPV
  • Payback period
  • IRR
  • Profitability Index
Answer: Payback period
Q13 | Formula of profitability index is ___________
  • PV of cash inflow / PV of cash outlay
  • Pv of cash inflow – PV of cash outlay
  • PV of cash inflow + Pv of cash outlay
  • PV of cash outlay / PV of cash inflow
Answer: PV of cash inflow / PV of cash outlay
Q14 | __________ monitors the balance of payments of its member nations.
  • World Bank
  • IMF
  • WTO
  • IFC
Answer: IMF
Q15 | ________ deals with the global rules of trade between nations.
  • WTO
  • IFC
  • World Bank
  • IMF
Answer: WTO
Q16 | _________ supporters’ sustainable investments in the private sector.
  • IFC
  • World Bank
  • IMF
  • WTO
Answer: IFC
Q17 | _____________ includes risk of loss from uniform political and government issues.
  • Political Risk
  • International Finance
  • Imperfect Market
  • Foreign Exchange risk
Answer: Political Risk
Q18 | Due to imperfection in markets ___________ are restricted by a limit to invest andmanage their portfolio.
  • Investors
  • Creditors
  • Debtors
  • Consumers
Answer: Investors
Q19 | ____________ to promote domestic investment and growth through capital Market.
  • International Finance
  • World Bank
  • WTO
  • IFC
Answer: International Finance
Q20 | _________ it increases in flow of capital and investment to developing economics.
  • Globalization
  • Privatization
  • Liberalization
  • Balance of payment
Answer: Globalization
Q21 | ________ control over the monetary system of India.
  • RBI
  • IFC
  • IMF
  • WTO
Answer: RBI
Q22 | _________ records all international transactions that involve creation of assets andliabilities in foreign currencies.
  • Capital Account
  • Reserve Account
  • Current Accountant
  • Saving Account
Answer: Capital Account
Q23 | _____________ leads to increasingly the standard of living of developing economics.
  • Privatization
  • Globalization
  • Liberalization
  • Bank of Trade
Answer: Globalization
Q24 | __________ also relates to international assets and liabilities for such transactions which the country’s monetary authorities use to such transactions which the country’s monetary authorities use to settle the deficits and surpluses.
  • Reserve Account
  • Capital Account
  • Saving Account
  • Current Account
Answer: Reserve Account
Q25 | ___________is a statistical residence.
  • Balance of payment
  • Balance of Trade
  • Omissions
  • Errors and omissions
Answer: Errors and omissions
Previous Next