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This set of International Finance Multiple Choice Questions & Answers (MCQs) focuses on International Finance Set 8
Q1 | If Quote of Bank ABC is EUR INR 68.00 /30 and Quote of Bank PQR is INR EUR1.4550/1.4600, arbitrage opportunity will be ___________-
- 2828
- 0
- 2882
- 2288
Q2 | Effect of falling domestic exchange rate ___________
- Reduces Profitability for importers
- Increases Profitability for importers
- Exposure
- Economic
Q3 | ___________ refers to the size or scope of potential loss.
- Risk
- Uncertainty
- Exposure
- Tr
Q4 | ____________ risk is also called as “According Exposure”.
- Transaction
- Economic
- Translation
- Exposure
Q5 | Internal techniques of managing forex risk includes all of the following, except_______________
- Leading and Lagging
- Matching
- Split Currency invoicing
- Forward and Future contracts
Q6 | When a company has receipts and payments in the same foreign currency due at thesame time, it can use ___________technique of managing forex risk.
- Risk Sharing Agreement
- Lagging
- Leading
- Matching
Q7 | _________ is a tax levied on passive income earned by an individua; or corporation ofone country within the tax jurisdiction of another country.
- Income Tax
- Withholding Tax
- Value added tax
- Poll Tax
Q8 | ____________ is also known as secrecy jurisdiction.
- Tax haven
- Transfer Pricing
- Foreign affiliate
- Tax
Q9 | A strategy used to reduce tax liabilities by pricing goods and services within a group structure in way that it does not reflect the arm’s length transaction_______________.
- Thin Capitalization
- Repatriating Profits
- Transfer Pricing
- Tax haven
Q10 | ____________ is a Tax avoidance technique whereby multinational subsidiaries are financed primarily by debt from the parent company instead of equity capital.
- Thin Capitalization
- Repatriating Profits
- Transfer Pricing
- Tax haven