Top 250+ Solved International Finance MCQ Questions Answer
Q. Effect of falling domestic exchange rate ___________
a. Reduces Profitability for importers
b. Increases Profitability for importers
c. Exposure
d. Economic
Q. ___________ refers to the size or scope of potential loss.
a. Risk
b. Uncertainty
c. Exposure
d. Tr
Q. ____________ risk is also called as “According Exposure”.
a. Transaction
b. Economic
c. Translation
d. Exposure
Q. Internal techniques of managing forex risk includes all of the following, except_______________
a. Leading and Lagging
b. Matching
c. Split Currency invoicing
d. Forward and Future contracts
Q. When a company has receipts and payments in the same foreign currency due at thesame time, it can use ___________technique of managing forex risk.
a. Risk Sharing Agreement
b. Lagging
c. Leading
d. Matching
Q. _________ is a tax levied on passive income earned by an individua; or corporation ofone country within the tax jurisdiction of another country.
a. Income Tax
b. Withholding Tax
c. Value added tax
d. Poll Tax
Q. ____________ is also known as secrecy jurisdiction.
a. Tax haven
b. Transfer Pricing
c. Foreign affiliate
d. Tax
Q. A strategy used to reduce tax liabilities by pricing goods and services within a group structure in way that it does not reflect the arm’s length transaction_______________.
a. Thin Capitalization
b. Repatriating Profits
c. Transfer Pricing
d. Tax haven
Q. ____________ is a Tax avoidance technique whereby multinational subsidiaries are financed primarily by debt from the parent company instead of equity capital.
a. Thin Capitalization
b. Repatriating Profits
c. Transfer Pricing
d. Tax haven