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This set of Foreign Exchange Management Multiple Choice Questions & Answers (MCQs) focuses on Foreign Exchange Management Set 4

Q1 | ____________ means using short-term forward contracts to offset “paper” gainsand losses on the long-term assets and liabilities of foreign subsidiaries.
Q2 | Which exchange rate theory focuses on the inflation – exchange rate relationship?
Q3 | The exchange rate prevailing at a financial reporting date
Q4 | The bank account of a non-resident of a country, where the amount of currency inthe account cannot be transferred to another country is called as
Q5 | Funds that cannot be remitted from the subsidiary to the parent due to hostgovernment restrictions is known as
Q6 | Exchange rate between currency A and currency B, given the values of currencies Aand B with respect to a third currency is known as
Q7 | Agreement to exchange one currency for another at a specified exchange rate anddate is
Q8 | Long– term securities denominated in two currencies is called as
Q9 | Foreign exchange transactions involve monetary transactions
Q10 | A foreign currency account maintained by a bank abroad is its
Q11 | Non-resident Bank Accounts’ refer to
Q12 | The number of nostro accounts that can be maintained by a bank in a particularcurrency is
Q13 | Full fledged money changers are authorized to undertake
Q14 | . IMF augments its resources by borrowing under
Q15 | The abbreviations SDR stands for
Q16 | The value of SDR is
Q17 | The term World Bank refers to
Q18 | . IBRD lending is not available for
Q19 | The eligibility to borrow from IDA is based on
Q20 | Financial products of IFC does not include
Q21 | MIGA stands for
Q22 | Guarantee provided by MIGA to private investors covers risk of
Q23 | The activities of ADB include
Q24 | A ‘credit’ in balance of payments indicates
Q25 | The current account of balance of payments does not include