Top 250+ Solved International Finance MCQ Questions Answer
Q. The ______________ is the price at which the trader is willing to buy foreign currency.
a. offer
b. bid
c. spread
d. cross rate
Q. Which of the following is the price at which the trader is willing to sell foreign currency?
a. bid
b. spread
c. offer
d. cross rate
Q. .………is only a legal agreement and it is not an institution, but ….. is a permanent institution.
a. gatt, wto
b. wto, gatt
c. wto, imf
d. imf, gatt
Q. The WTO was established to implement the final act of Uruguay Round agreement of ……
a. mfa
b. gatt
c. trip’s
d. uno
Q. WTO stands for
a. world technology association
b. world time organization
c. world trade organization
d. world tourism organization
Q. What is the name of the international organization that fosters monetary and financial cooperationand serves as a bank for central banks?
a. wto
b. eu
c. world bank
d. bank for international settlements
Q. Which of the following are institutional banks that provide financial support and professional advicefor developing countries?
a. a) multilateral development banks
b. b) central banks
c. c) investment banks
d. d) barclays bank
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. Which of the following examples definitely illustrates a depreciation of the U.S. dollar?
a. the dollar exchanges for 1 pound and then exchanges for 1.2 pounds.
b. the dollar exchanges for 250 yen and then exchanges for 275 francs.
c. the dollar exchanges for 100 francs and then exchanges for 120 yen.
d. the dollar exchanges for 120 francs and then exchanges for 100 francs
Q. Interest rate swaps are usually possible because international financial markets in different countriesare
a. efficient
b. perfect
c. imperfect
d. both a & b
Q. The exchange rate is the
a. total yearly amount of money changed from one country’s currency to another country’s currency
b. total monetary value of exports minus imports
c. amount of country’s currency which can exchanged for one ounce of gold
d. price of one country’s currency in terms of another country’s currency
Q. A speculator in foreign exchange is a person who
a. buys foreign currency, hoping to profit by selling it a a higher exchange rate at some later date
b. earns illegal profit by manipulation foreign exchange
c. causes differences in exchange rates in different geographic markets
d. none of the above
Q. Under a gold standard,
a. a nation’s currency can be traded for gold at a fixed rate
b. a nation’s central bank or monetary authority has absolute control over its money supply
c. new discoveries of gold have no effect on money supply or prices
d. a & b
Q. The Bretton Woods accord
a. of 1879 created the gold standard as the basis of international finance
b. of 1914 formulated a new international monetary system after the collapse of the gold standard
c. of 1944 formulated a new international monetary system after the collapse of the gold standard
d. none of the above
Q. The current system of international finance is a
a. gold standard
b. fixed exchange rate system
c. floating exchange rate system
d. managed float exchange rate system