MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
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 |
| Answer» D. Tax haven | |
| 2. |
The Dow Jones Industrial Average (DJIA) contains _________ of the largest and most influential companies (blue chip companies) is the US__________ |
| A. | 35 |
| B. | 25 |
| C. | 40 |
| D. | 30 |
| Answer» E. | |
| 3. |
Required Return from an investment =____________ |
| A. | Risk free return + Risk premium |
| B. | Risk free Return Risk Premium |
| C. | Risk free return x Risk premium |
| D. | Risk free Return / Risk Premium |
| Answer» B. Risk free Return Risk Premium | |
| 4. |
____________ risk is also called as According Exposure . |
| A. | Transaction |
| B. | Economic |
| C. | Translation |
| D. | Exposure |
| Answer» D. Exposure | |
| 5. |
IPO stands for ____________ |
| A. | Indian Profit Organization |
| B. | Investment and Public Offering |
| C. | Initial Public Offering |
| D. | Initial Prospectus Offering |
| Answer» D. Initial Prospectus Offering | |
| 6. |
An unsponsored ADR, __________ |
| A. | Complies with regulatory reporting |
| B. | Is listed on International stock exchanges |
| C. | Trades in OTC market |
| D. | Is issued by a bank on behalf of foreign company whose equity serves as underlying asset |
| Answer» D. Is issued by a bank on behalf of foreign company whose equity serves as underlying asset | |
| 7. |
________ was introduced at a time when forex reserves of the country were low. |
| A. | FERA |
| B. | FEMA |
| C. | GATT |
| D. | IMF |
| Answer» B. FEMA | |
| 8. |
If Quote of Bank ABC is EUR INR 68.00 /30 and Quote of Bank PQR is INR EUR 1.4550/1.4600, arbitrage opportunity will be ___________- |
| A. | 2828 |
| B. | 0 |
| C. | 2882 |
| D. | 2288 |
| Answer» B. 0 | |
| 9. |
When a company has receipts and payments in the same foreign currency due at the same time, it can use ___________technique of managing forex risk. |
| A. | Risk Sharing Agreement |
| B. | Lagging |
| C. | Leading |
| D. | Matching |
| Answer» E. | |
| 10. |
_________ is a tax levied on passive income earned by an individua; or corporation of one country within the tax jurisdiction of another country. |
| A. | Income Tax |
| B. | Withholding Tax |
| C. | Value added tax |
| D. | Poll Tax |
| Answer» C. Value added tax | |
| 11. |
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 |
| Answer» E. | |
| 12. |
The world s major trading currencies, which are a free to float against each other, include all of the following except__________________ |
| A. | British Pound |
| B. | Japanese Yen |
| C. | US Dollar |
| D. | Spanish Peso |
| Answer» E. | |
| 13. |
National that have major economic expansion attract _____________________ |
| A. | Imports |
| B. | Exports |
| C. | FDI |
| D. | Privatization |
| Answer» D. Privatization | |
| 14. |
In the foreign exchange market, the _______________ of one country is traded for the ________________of another country. |
| A. | Currency, Currency |
| B. | Currency, Financial instruments |
| C. | Currency goods |
| D. | Goods Goods |
| Answer» B. Currency, Financial instruments | |
| 15. |
IMF stands for ____________ |
| A. | International Monetary Fund |
| B. | Indian Monetary Fund |
| C. | International Monetary Finance |
| D. | Indian Monetary Finance |
| Answer» B. Indian Monetary Fund | |
| 16. |
Systematic record of economic transaction of a country during a given period of time is _______________-- |
| A. | ADR |
| B. | BOP |
| C. | GDR |
| D. | IFRS |
| Answer» C. GDR | |
| 17. |
Effect of falling domestic exchange rate ___________ |
| A. | Reduces Profitability for importers |
| B. | Increases Profitability for importers |
| C. | Exposure |
| D. | Economic |
| Answer» B. Increases Profitability for importers | |
| 18. |
Funs based services includes all of the following except _______________- |
| A. | Bill discounting |
| B. | Factoring |
| C. | Lease Financing |
| D. | M & A Services |
| Answer» E. | |
| 19. |
_________ deals with the global rules of trade between nations. |
| A. | WTO |
| B. | IFC |
| C. | IBRD |
| D. | World Bank |
| Answer» B. IFC | |
| 20. |
Exchange rate is the __________________ |
| A. | Opportunity cost at which goods are produced domestically |
| B. | Balance of trade ratio of one country to another |
| C. | Price of one country s currency expressed in terms of another country s currency |
| D. | Amount if currency that can be purchased with 1ounce of gold |
| Answer» D. Amount if currency that can be purchased with 1ounce of gold | |
| 21. |
Difference between the value of merchandise exports and imports is ____________________ |
| A. | BOP |
| B. | BOT |
| C. | Capital Account |
| D. | Official Reserve Account |
| Answer» C. Capital Account | |
| 22. |
Current account includes all of the following except _______________- |
| A. | Merchandise Balance |
| B. | Service Balance |
| C. | FDI |
| D. | Unilateral Transfers |
| Answer» D. Unilateral Transfers | |
| 23. |
Statistical residue is a part of ____________________ |
| A. | Errors and Omissions |
| B. | Current Account |
| C. | Capital Account |
| D. | Reserve Account |
| Answer» B. Current Account | |
| 24. |
Sale or purchase of gold in BOP is covered under _____________________ |
| A. | Capital Account |
| B. | Current Account |
| C. | Official Reserve Account |
| D. | Balancing Items |
| Answer» D. Balancing Items | |
| 25. |
Reserves are held in following forms, except __________________ |
| A. | Foreign Currency |
| B. | Gold |
| C. | SDR |
| D. | Silver |
| Answer» E. | |
| 26. |
SDR is an international reserve asset created by_____________________ |
| A. | IMF |
| B. | WTO |
| C. | World Bank |
| D. | IBRD |
| Answer» B. WTO | |
| 27. |
FDI in Bop is covered under ________________ |
| A. | Capital Account |
| B. | Current Account |
| C. | Official Reserve Account |
| D. | Balancing items |
| Answer» B. Current Account | |
| 28. |
___________is a statistical residence. |
| A. | Balance of payment |
| B. | Balance of Trade |
| C. | Omissions |
| D. | Errors and omissions |
| Answer» E. | |
| 29. |
SDR is an international reserve asset created by . |
| A. | imf |
| B. | wto |
| C. | world bank |
| D. | ibrd |
| Answer» B. wto | |
| 30. |
analyses if the benefits will justify the project cost/investment done. |
| A. | economic analysis |
| B. | technical analysis |
| C. | managerial analysis |
| D. | market analysis |
| Answer» B. technical analysis | |
| 31. |
is not a type of foreign exchange risk. |
| A. | transaction risk |
| B. | translation risk |
| C. | economic risk |
| D. | natural risk |
| Answer» E. | |
| 32. |
is known as Benefit/cost ratio |
| A. | profitability index |
| B. | pay back period |
| C. | npv |
| D. | irr |
| Answer» B. pay back period | |
| 33. |
was introduced at a time when forex reserves of the country were low. |
| A. | fera |
| B. | fema |
| C. | gatt |
| D. | exim |
| Answer» B. fema | |
| 34. |
frames rules and guidelines for Forex Business in India |
| A. | rbi |
| B. | sebi |
| C. | irda |
| D. | fedai |
| Answer» E. | |
| 35. |
can authorize a person/company to deal in foreign exchange. |
| A. | sebi |
| B. | rbi |
| C. | irda |
| D. | parliament |
| Answer» C. irda | |
| 36. |
is a negotiable instrument issued by an international depository bank, representing a foreign company stock, trading on global stock Exchanges. |
| A. | adr |
| B. | gdr |
| C. | idr |
| D. | euro bonds |
| Answer» C. idr | |
| 37. |
is a negotiable instrument issued by a US bank, representing non-US company stock, trading on the US stock Exchange. |
| A. | adr |
| B. | gdr |
| C. | idr |
| D. | euro bonds |
| Answer» B. gdr | |
| 38. |
contacts are bilateral contracts. |
| A. | forward |
| B. | futures |
| C. | options |
| D. | swaps |
| Answer» B. futures | |
| 39. |
bond is issued in a local market by a domestic borrower, usually denominated in local currency |
| A. | foreign bond |
| B. | euro bond |
| C. | domestic bond |
| D. | euro credit |
| Answer» B. euro bond | |
| 40. |
bond is issued in a local market by a foreign borrower, denominated in local currency |
| A. | foreign bond |
| B. | euro bond |
| C. | domestic bond |
| D. | euro credit |
| Answer» B. euro bond | |
| 41. |
is a standardized contract to exchange one currency for another at a |
| A. | futures contract |
| B. | options contract |
| C. | swaps |
| D. | forward contract |
| Answer» B. options contract | |
| 42. |
If formula I of Fishers effect is positive, borrow and invest in . |
| A. | foreign, home |
| B. | foreign, foreign |
| C. | home, home |
| D. | home, foreign |
| Answer» E. | |
| 43. |
Theory states that the exchange rate between currencies of two countries should be equal to the ratio of the countries price levels. |
| A. | irp |
| B. | ppp |
| C. | fishers |
| D. | marshalls |
| Answer» C. fishers | |
| 44. |
is a market where foreign currencies are bought & sold. |
| A. | stock market |
| B. | forex market |
| C. | capital market |
| D. | debt market |
| Answer» C. capital market | |
| 45. |
is the smallest unit by which a currency quotation can change. |
| A. | pip |
| B. | bid |
| C. | ask |
| D. | spread |
| Answer» B. bid | |
| 46. |
In Holgate’s principle, if Bid > Ask, Swap points of forward rate are to be |
| A. | added |
| B. | subtracted |
| C. | multiplied |
| D. | divided |
| Answer» C. multiplied | |
| 47. |
SDR is an international reserve asset created by . |
| A. | imf |
| B. | wto |
| C. | world bank |
| D. | ibrd |
| Answer» B. wto | |
| 48. |
Reserves are held in the following forms, except . |
| A. | foreign currency |
| B. | gold |
| C. | sdr |
| D. | silver |
| Answer» E. | |
| 49. |
Systematic record of economic transactions of a country during given period of time is known as . |
| A. | adr |
| B. | bop |
| C. | gdr |
| D. | ifrs |
| Answer» C. gdr | |
| 50. |
The world’s major trading currencies, which are free to float against each other, include all of the following except |
| A. | british pound |
| B. | japanese yen |
| C. | us dollar |
| D. | spanish peso |
| Answer» E. | |