Top 250+ Solved International Financial Management MCQ Questions Answer
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
Q. A simultaneous purchase and sale of foreign exchange for two different dates is called
a. currency devalue
b. currency swap
c. currency valuation
d. currency exchange
Q. Investment can be defined.
a. Person’s dedication to purchasing a house or flat
b. Use of capital on assets to receive returns
c. Usage of money on a production process of products and services
d. Net additions made to the nation’s capital stocks
Q. The concept of Financial management is.
a. Profit maximization
b. All features of obtaining and using financial resources for company operations
c. Organization of funds
d. Effective Management of every company
Q. What is the primary goal of financial management?
a. To minimise the risk
b. To maximise the owner’s wealth
c. To maximise the return
d. To raise profit
Q. The finance manager is accountable for.
a. Earning capital assets of the company
b. Effective management of a fund
c. Arrangement of financial resources
d. Proper utilisation of funds
Q. The market value of a share is responsible for.
a. The investment market
b. The government
c. Shareholders
d. The respective companies
Q. The capital budget is associated with.
a. Long terms and short terms assets
b. Fixed assets
c. Long terms assets
d. Short term assets
Q. CAPM stands for.
a. Capital asset pricing model.
b. Capital amount printing model.
c. Capital amount pricing model.
d. Capital asset printing model.
Q. What does financial leverage measure?
a. No change with EBIT and EPS
b. The sensibility of EBIT with % change with respect to output
c. The sensibility of EPS with % change in the EBIT level
d. % variation in the level of production
Q. From the below-mentioned items which are financial assets?
a. Machines
b. Bonds
c. Stocks
d. B and C
Q. Trade between two countries can be useful if cost ratios of goods are:
a. Undetermined
b. Decreasing
c. Equal
d. Different
Q. The term Euro Currency market refers to
a. The international foreign exchange market
b. The market where the borrowing and lending of currencies take place outside the country of issue
c. The countries which have adopted Euro as their currency
d. The market in which Euro is exchanged for other currencies
Q. Which of the following theories suggests that firms seek to penetrate new markets over time?
a. Imperfect Market Theory
b. Product cycle theory
c. Theory of Comparative Advantage
d. None of the above
Q. Dumping refers to:
a. Reducing tariffs
b. Sale of goods abroad at low a price, below their cost and price in home market
c. Buying goods at low prices abroad and selling at higher prices locally
d. Expensive goods selling for low prices