Top 150+ Solved Advanced Financial Management 2 MCQ Questions Answer

From 136 to 148 of 148

Q. An option to buy is called a _______

a. Put Option

b. Bid Option

c. Call Option

d. Preemptive Option

  • c. Call Option

Q. ‘Speculators’ in the market _______________

a. Need foreign currency to pay their import obligations

b. Invest in securities of foreign country

c. Try to profit from exchange rate movements

d. None of the Above

  • c. Try to profit from exchange rate movements

Q. Which one of the following is NOT a Foreign Exchange Risk Management Technique

a. Forward Contract

b. Futures Contract

c. External Commercial Borrowing

d. Currency Options

  • c. External Commercial Borrowing

Q. Default risk is higher in which one of the following?

a. Forward Contracts

b. Futures Contracts

c. Equal in both a and b

d. None of the Above

  • a. Forward Contracts

Q. Establishment of new plants and offices overseas by MNC as a mean of FDI is

a. A Greenfield Investment

b. A Brownfield Investment

c. Vertical FDI

d. None of the Above

  • a. A Greenfield Investment

Q. Hilton Hotels of United States opening a hotel in Mumbai, India is ____________

a. A Horizontal FDI

b. A Vertical FDI

c. A Conglomerate FDI

d. None of the Above

  • a. A Horizontal FDI

Q. There are basically two approaches to find out NPV of a foreign based project’s capitalbudgeting exercise. Which are those two?

a. Home Currency and foreign currency approaches

b. One Currency and Multi Currency Approaches

c. Home Country and Foreign Country Approaches

d. None of the Above

  • a. Home Currency and foreign currency approaches

Q. When an Option can be exercised on any date up to maturity, it is called

a. A Flexible Option

b. An European Option

c. A British Option

d. An American Option

  • d. An American Option

Q. Capital investment made by firms in another county is called______

a. Foreign Direct Investment

b. Foreign Direct Involvement

c. Foreign Debt Investment

d. None of he Above

  • a. Foreign Direct Investment
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