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. |
In quote of 1 USD = INR 60, is a home country |
| A. | india |
| B. | usa |
| C. | france |
| D. | russia |
| Answer» B. usa | |
| 2. |
GATT stands for __________ |
| A. | general agreement on tariffs and trade |
| B. | general agreement on transport and trade |
| C. | general arrangement on tariffs and trade |
| D. | general agreement on transport and trade |
| Answer» B. general agreement on transport and trade | |
| 3. |
As per Smithsonian Agreement 1 ounce of gold = USD _ |
| A. | 30 |
| B. | 35 |
| C. | 36 |
| D. | 38 |
| Answer» E. | |
| 4. |
In Loro Account, Loro means ______ |
| A. | our |
| B. | theirs |
| C. | yours |
| D. | my |
| Answer» C. yours | |
| 5. |
GBP/ USD = 1.0376-90. In this case USD is also known as ___Currency |
| A. | base |
| B. | foreign |
| C. | variable |
| D. | transaction |
| Answer» D. transaction | |
| 6. |
Satistical residue is a part of _______ |
| A. | errors and ommissions |
| B. | current account |
| C. | capital account |
| D. | reserve account |
| Answer» B. current account | |
| 7. |
EUR/USD = 1.2596-1.2620, Percentage Spread = _________ |
| A. | 0.0024 |
| B. | 1.2608 |
| C. | 0.19 |
| D. | 0.38 |
| Answer» D. 0.38 | |
| 8. |
If NPV is zero, the project is _________ |
| A. | financially viable |
| B. | breakeven |
| C. | financially not viable |
| D. | slower |
| Answer» C. financially not viable | |
| 9. |
EUR/INR 68.0000-68.0030 & INR 1.4550-1.4600 what is the arbitage oppportunity |
| A. | 2228 |
| B. | 0 |
| C. | 2882 |
| D. | 2828 |
| Answer» E. | |
| 10. |
___ risk is also called as "Accounting Exposure" |
| A. | transaction |
| B. | economic |
| C. | translation |
| D. | transmittion |
| Answer» D. transmittion | |
| 11. |
ADR stands for ____________ |
| A. | asian depository receipt |
| B. | american depository receipt |
| C. | australian depository receipt |
| D. | africa depository receipt |
| Answer» C. australian depository receipt | |
| 12. |
Spot CHF/DEM rate is 0.7865/78 and one month forward points are 25-20 then what will be the one month forward CHF/DEM quote |
| A. | 1.0365 - 0.9878 |
| B. | 0.7890 - 0.7898 |
| C. | 0.5365 - 0.5878 |
| D. | 0.7840 - 0.7858 |
| Answer» E. | |
| 13. |
Spot USD/INR is 60.5600/60.5700 and one month SWAP points are 600/700 then outright forward rate will be . |
| A. | 60.6200/60.6400 |
| B. | 60.6400/60.62 00 |
| C. | 61.1600/61.2700 |
| D. | 61.2700/61.1600 |
| Answer» B. 60.6400/60.62 00 | |
| 14. |
                       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 | |
| 15. |
An investor looking at reducing his risk is known as . |
| A. | speculator |
| B. | hedger |
| C. | arbitrageur |
| D. | trader |
| Answer» C. arbitrageur | |
| 16. |
When a company has receipts & payments in the same foreign currency due at the same time, it can use technique of managing foreign exchange risk. |
| A. | risk sharing agreement |
| B. | leading |
| C. | lagging |
| D. | exposure netting (matching) |
| Answer» E. | |
| 17. |
If two banks are quoting the following GBP rates: Bank A : Rs 78.9810 - 79.1110 and Bank B : Rs 79. 0110 - 79.2350. The arbitrage opportunity will be . |
| A. | 100 |
| B. | 0 |
| C. | 124 |
| D. | 142 |
| Answer» C. 124 | |
| 18. |
All are methods of Internally managing foreign exchange risk except, . |
| A. | exposure netting |
| B. | leading & lagging |
| C. | denomination in local currency |
| D. | forward contract |
| Answer» E. | |
| 19. |
                     is not a type of foreign exchange risk. |
| A. | transaction risk |
| B. | translation risk |
| C. | economic risk |
| D. | natural risk |
| Answer» E. | |
| 20. |
Lower the better applies to method of Capital budgeting |
| A. | npv |
| B. | pay back period |
| C. | irr |
| D. | profitability index |
| Answer» C. irr | |
| 21. |
                       is known as Benefit/cost ratio |
| A. | profitability index |
| B. | pay back period |
| C. | npv |
| D. | irr |
| Answer» B. pay back period | |
| 22. |
             frames rules and guidelines for Forex Business in India |
| A. | rbi |
| B. | sebi |
| C. | irda |
| D. | fedai |
| Answer» E. | |
| 23. |
If IRR > WACC, then the Project must be |
| A. | accepted |
| B. | rejected |
| C. | discarded |
| D. | reviewed |
| Answer» B. rejected | |
| 24. |
               was introduced at a time when forex reserves of the country were low. |
| A. | fera |
| B. | fema |
| C. | gatt |
| D. | exim |
| Answer» B. fema | |
| 25. |
IPO stands for . |
| A. | indian profit organisation |
| B. | investment & public offerings |
| C. | initial prospectus offering |
| D. | initial public offering |
| Answer» E. | |
| 26. |
               can authorize a person/company to deal in foreign exchange. |
| A. | sebi |
| B. | rbi |
| C. | irda |
| D. | parliament |
| Answer» C. irda | |
| 27. |
In ADR/GDR process, _ issues depository receipts in foreign markets. |
| A. | custodian bank |
| B. | depository bank |
| C. | issuing company |
| D. | lead manager |
| Answer» C. issuing company | |
| 28. |
             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 | |
| 29. |
                   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 | |
| 30. |
                   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 | |
| 31. |
             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 | |
| 32. |
An option giving the buyer of the option the right to buy but not an obligation to buy a currency is called |
| A. | call option |
| B. | put option |
| C. | forward option |
| D. | futures option |
| Answer» B. put option | |
| 33. |
                   contacts are bilateral contracts. |
| A. | forward |
| B. | futures |
| C. | options |
| D. | swaps |
| Answer» B. futures | |
| 34. |
Foreign currency forward market is |
| A. | over the counter unorganized market |
| B. | organised market without trading |
| C. | organised, listed market |
| D. | unorganised listed market |
| Answer» B. organised market without trading | |
| 35. |
                     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 | |
| 36. |
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. | |
| 37. |
               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 | |
| 38. |
               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 | |
| 39. |
         is the smallest unit by which a currency quotation can change. |
| A. | pip |
| B. | bid |
| C. | ask |
| D. | spread |
| Answer» B. bid | |
| 40. |
If spot USD/INR is 50, and six months forward rate is 51 then AFM is |
| A. | 1% |
| B. | 4% |
| C. | 2% |
| D. | 3% |
| Answer» C. 2% | |
| 41. |
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 | |
| 42. |
100 INR/JPY is an indirect quote for |
| A. | india |
| B. | japan |
| C. | us |
| D. | china |
| Answer» B. japan | |
| 43. |
The quote 1 GBP = INR 99.85 is a direct quote for . |
| A. | india |
| B. | britain |
| C. | us |
| D. | china |
| Answer» B. britain | |
| 44. |
Inverse quote for USD/DKK 5.7935 - 5.8085 is |
| A. | dkk/usd 0.1722 - 0.1726 |
| B. | usd/dkk 0.1722 - 0.1726 |
| C. | dkk/usd 0.1726 - 0.1722 |
| D. | usd/dkk 0.1726 - 0.1722 |
| Answer» B. usd/dkk 0.1722 - 0.1726 | |
| 45. |
In Spot market, exchange of currencies take place on basis. |
| A. | t + 1 |
| B. | t + 0 |
| C. | t + 2 |
| D. | t + 3 |
| Answer» C. t + 2 | |
| 46. |
An account which is held within a domestic country by a foreign bank, in a currency of domestic country is known as account |
| A. | loro |
| B. | nostro |
| C. | vostro |
| D. | swift |
| Answer» D. swift | |
| 47. |
SBI A/c with HSBC in UK is an example of |
| A. | loro |
| B. | nostro |
| C. | vostro |
| D. | swift |
| Answer» C. vostro | |
| 48. |
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 |
| Answer» C. mixed | |
| 49. |
Under Exchange rate system, there is no interference of monetary authorities to decide exchange rate. |
| A. | fixed |
| B. | floating |
| C. | mixed |
| D. | pegged |
| Answer» C. mixed | |
| 50. |
FDI in BOP is covered under . |
| A. | official reserve account |
| B. | current account |
| C. | capital account |
| D. | balancing items |
| Answer» D. balancing items | |