Top 80+ Solved Foreign Exchange Management MCQ Questions Answer
Q. A group of European countries have formed a union and created a commoncurrency known as __________.
a. the EU currency
b. the European Union
c. the EMU
d. the Euro
Q. The forward exchange rate __________.
a. is the rate today for exchanging one currency for another for immediate delivery
b. is the rate today for exchanging one currency for another at a specific future date
c. is the rate today for exchanging one currency for another at a specific location on a specific future date
d. is the rate today for exchanging one currency for another at a specific location for immediate delivery
Q. The spot exchange rate __________.
a. is the rate today for exchanging one currency for another for immediate delivery
b. is the rate today for exchanging one currency for another at a specific future date
c. is the rate today for exchanging one currency for another at a specific location on a specific future date
d. is the rate today for exchanging one currency for another at a specific location for immediate delivery
Q. What are the forms of assistance that the World Bank provides to its members?
a. Technical and financial
b. Political and financial
c. Political and economic
d. Technical and military
Q. The system operated by the WTO is known as the
a. multilateral trading system
b. bilateral trading system
c. ratified system
d. ungratified system
Q. The price at which a market maker is prepared to buy (a currency) or borrow (money) is termed as
a. spot rate
b. bid rate
c. ask price
d. forward rate
Q. A deposit or borrowing domiciled outside the home country of the currency is called as
a. foreign bond
b. euro bond
c. euro currency
d. domestic bond
Q. The price at which a market maker is prepared to sell (a currency) or lend (money)
a. forward rate
b. sport rate
c. bid rate
d. offer rate
Q. A contract that gives the buyer the right to buy commodity or a foreign currencyfrom the seller at a fixed price is called as
a. put option
b. call option
c. cross option
d. currency swap
Q. CIF stands for
a. Cost, interest, freight
b. Cost, income, freight
c. Cost, insurance, freight
d. Customs, insurance, freight
Q. The market where long term securities (shares, bonds, etc) are bought and sold iscalled as
a. money market
b. capital market
c. primary market
d. secondary market
Q. A bank located usually in another country that provides service for another bank is
a. Foreign bank
b. Central bank
c. Correspondent bank
d. World bank