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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