Top 80+ Solved Foreign Exchange Management MCQ Questions Answer
Q. Agreement to exchange one currency for another at a specified exchange rate anddate is
a. Currency swap
b. Swap points
c. Currency put option
d. Currency call option
Q. Long– term securities denominated in two currencies is called as
a. Euro bond
b. Dual – currency bonds
c. Foreign bonds
d. Euro dollar deposit.
Q. Foreign exchange transactions involve monetary transactions
a. among residents of the same country
b. between residents of two countries only
c. between residents of two or more countries
d. among residents of at least three countries
Q. A foreign currency account maintained by a bank abroad is its
a. nostro account
b. vostro account
c. loro account
d. foreign bank account
Q. Non-resident Bank Accounts’ refer to
a. nostro account
b. vostro account
c. accounts opened in offshore centers
d. foreign bank account
Q. The number of nostro accounts that can be maintained by a bank in a particularcurrency is
a. One
b. not exceeding three
c. minimum two
d. no such limit
Q. Full fledged money changers are authorized to undertake
a. only sale transactions
b. only purchase transactions
c. all types of foreign exchange transactions
d. purchase and sale of foreign currency notes, coins and travelers cheques
Q. . IMF augments its resources by borrowing under
a. General arrangements to borrow
b. New arrangements to borrow
c. Trust funds
d. All the above
Q. The abbreviations SDR stands for
a. Special Drawing Rights
b. Specific Drawing Rights
c. Special Depository Rules
d. Specific Depository Rules
Q. The value of SDR is
a. equivalent to one US dollar
b. based on value of gold
c. average of the value of US dollar and Euro
d. based on basket of five currencies
Q. . IBRD lending is not available for
a. middle income countries
b. low income countries
c. multilateral agencies
d. developed countries
Q. The eligibility to borrow from IDA is based on
a. relative poverty
b. lack of creditworthiness to borrow on market terms
c. good policy performance
d. all the above
Q. Financial products of IFC does not include
a. loans
b. equity participation
c. risk management products
d. none of the above
Q. MIGA stands for
a. Multilateral Investment Guarantee Agency
b. Multilateral Institutional and Government Agencies
c. Mutual Interest Guaranteeing Agencies
d. Mutual Institutional and Government Agencies