Top 250+ Solved International Finance MCQ Questions Answer
Q. Fee Based services includes all of the following except .
a. merchant banking
b. factoring
c. m&a services
d. custodian services
Q. Current account includes all of the following, except .
a. merchandise balance
b. services balance
c. fdi
d. unilateral transfers
Q. Statistical residue is a part of .
a. errors & omissions
b. current account
c. capital account
d. reserve account
Q. FDI in BOP is covered under .
a. official reserve account
b. current account
c. capital account
d. balancing items
Q. Under Exchange rate system, there is no interference of monetary authorities to decide exchange rate.
a. fixed
b. floating
c. mixed
d. pegged
Q. Under Exchange rate system, value of currency is decided by the market forces of demand and supply.
a. fixed
b. floating
c. mixed
d. pegged
Q. Ultimately ………………was replaced by the …………….on 1st Jan 1995
a. gats, wto
b. wto, gatt
c. gatt, wto
d. imf, gatt
Q. _______ is the first step in the internationalization process.
a. license
b. foreign investment
c. sales
d. export
Q. In the foreign exchange market, the ________ of one country is traded for the ________ of anothercountry.
a. currency; currency
b. currency; financial instruments
c. currency; goods
d. goods; goods
Q. By definition, currency appreciation occurs when
a. the value of all currencies falls relative to gold.
b. the value of all currencies rises relative to gold.
c. the value of one currency rises relative to another currency.
d. the value of one currency falls relative to another currency
Q. Hedging is used by companies to:
a. decrease the variability of tax paid
b. decrease the spread between spot and forward market quotes
c. increase the variability of expected cash flows
d. decrease the variability of expected cash flows