Top 80+ Solved Foreign Exchange Management MCQ Questions Answer
Q. The major players in the foreign exchange market are
a. commercial banks.
b. corporate.
c. exchange brokers.
d. central bank of the country and the Central Government
Q. Derivatives can be used by an exporter for managing
a. currency risk.
b. cargo risk.
c. credit risk.
d. business risk.
Q. The forward market is especially well-suited to offer hedging protection against
a. translation risk exposure.
b. transactions risk exposure.
c. political risk exposure.
d. taxation
Q. The euro is the name for
a. a currency deposited outside its country of origin.
b. a bond sold internationally outside of the country in whose currency
c. the bond is denominated
d. a common European currency.
Q. Which of the following are international financial considerations faced by bothsmall and large MNEs?
a. Currency systems
b. Tax systems
c. Interest rates
d. Exchange rate
Q. Strategies in which funds are moved from one MNE operation to another are called
a. funds positioning techniques
b. arm's length techniques.
c. fronting techniques.
d. subsidiary flows.
Q. Markets in which funds are transferred from those who have excess fundsavailable to those who have a shortage of available funds are called
a. commodity markets.
b. fund-available markets.
c. derivative exchange markets.
d. financial markets.
Q. Which of the following would likely have the least direct influence on a country'scurrent account?
a. Inflation.
b. National income.
c. Exchange rates
d. A tax on income earned from foreign stocks
Q. The primary component of the current account is the:
a. balance of trade.
b. balance of money market flows
c. balance of capital market flows
d. unilateral transfers.