MCQOPTIONS
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MCQOPTIONS
This section includes 211 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Management Studies (BMS) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
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 | |
| 2. |
Reserves are held in the following forms, except . |
| A. | foreign currency |
| B. | gold |
| C. | sdr |
| D. | silver |
| Answer» E. | |
| 3. |
The monetary penalty payable under FERA was nearly ___________times the amount involved. |
| A. | Three |
| B. | Five |
| C. | Two |
| D. | Six |
| Answer» C. Two | |
| 4. |
As per FEMA, no person, other than ________ would enter in any transactions of the foreign currency. |
| A. | Offshore banks |
| B. | Parliament |
| C. | Government |
| D. | Authorized Dealer |
| Answer» E. | |
| 5. |
RBI has granted license to certain established firms, hotels and other organizations permitting them to deal in foreign currency notes, coins and travelers cheques. They are termed as ___________ |
| A. | Authorized Banks |
| B. | Authorized Dealers |
| C. | Authorized Money changers |
| D. | Authorized shopkeeper |
| Answer» D. Authorized shopkeeper | |
| 6. |
FEDAI stands for _____________ |
| A. | Foreign Exchange dealers act of India |
| B. | Foreign Exchange direct association of India |
| C. | Foreign exchange dealers association Index |
| D. | Foreign exchange dealers association of India |
| Answer» E. | |
| 7. |
____________ can authorize a person / company to deal in foreign exchange. |
| A. | SEBI |
| B. | RBI |
| C. | IRDA |
| D. | Parliament |
| Answer» C. IRDA | |
| 8. |
__________ implies investment made with an intent of obtaining an ownership stake in an enterprise domiciled in a country by an enterprise situated in some other country. |
| A. | FDI |
| B. | FPI |
| C. | Two |
| D. | Six |
| Answer» C. Two | |
| 9. |
__________ is the process of analyzing and ranking proposed projects to determine which ones deserving of an investment. |
| A. | IPO |
| B. | Debt financing |
| C. | Capital Budgeting |
| D. | Budgeting |
| Answer» D. Budgeting | |
| 10. |
Walmart opening a new retail outlet is an example of _______________ project. |
| A. | Expansion |
| B. | Regulatory |
| C. | Replacement |
| D. | R & D |
| Answer» B. Regulatory | |
| 11. |
Net amount of all cash flowing in and out of the business, from all sources is ____________ cash flow. |
| A. | Incremental |
| B. | Total |
| C. | Terminal |
| D. | Capital budgeting |
| Answer» C. Terminal | |
| 12. |
_________ are the initial outlays required to analyse a project that cannot be recovered even if a project is accepted. |
| A. | Opportunity cost |
| B. | Externally |
| C. | Cannibalization |
| D. | Sunk cost |
| Answer» E. | |
| 13. |
___________ refers to the size or scope of potential loss. |
| A. | Risk |
| B. | Uncertainty |
| C. | Exposure |
| D. | Tr |
| Answer» B. Uncertainty | |
| 14. |
___________ means transfer of corporate money from a foreign country back to its home country. |
| A. | Repatriation |
| B. | Capital Budgeting |
| C. | Withholding |
| D. | Holding |
| Answer» B. Capital Budgeting | |
| 15. |
Formula of profitability index is ___________ |
| A. | PV of cash inflow / PV of cash outlay |
| B. | Pv of cash inflow PV of cash outlay |
| C. | PV of cash inflow + Pv of cash outlay |
| D. | PV of cash outlay / PV of cash inflow |
| Answer» B. Pv of cash inflow PV of cash outlay | |
| 16. |
__________ monitors the balance of payments of its member nations. |
| A. | World Bank |
| B. | IMF |
| C. | WTO |
| D. | IFC |
| Answer» C. WTO | |
| 17. |
________ deals with the global rules of trade between nations. |
| A. | WTO |
| B. | IFC |
| C. | World Bank |
| D. | IMF |
| Answer» B. IFC | |
| 18. |
Due to imperfection in markets ___________ are restricted by a limit to invest and manage their portfolio. |
| A. | Investors |
| B. | Creditors |
| C. | Debtors |
| D. | Consumers |
| Answer» B. Creditors | |
| 19. |
_________ supporters sustainable investments in the private sector. |
| A. | IFC |
| B. | World Bank |
| C. | IMF |
| D. | WTO |
| Answer» B. World Bank | |
| 20. |
_____________ includes risk of loss from uniform political and government issues. |
| A. | Political Risk |
| B. | International Finance |
| C. | Imperfect Market |
| D. | Foreign Exchange risk |
| Answer» B. International Finance | |
| 21. |
____________ to promote domestic investment and growth through capital Market. |
| A. | International Finance |
| B. | World Bank |
| C. | WTO |
| D. | IFC |
| Answer» B. World Bank | |
| 22. |
_________ it increases in flow of capital and investment to developing economics. |
| A. | Globalization |
| B. | Privatization |
| C. | Liberalization |
| D. | Balance of payment |
| Answer» B. Privatization | |
| 23. |
Lower the better applies to ___________ capital budgeting method. |
| A. | NPV |
| B. | Payback period |
| C. | IRR |
| D. | Profitability Index |
| Answer» C. IRR | |
| 24. |
________ control over the monetary system of India. |
| A. | RBI |
| B. | IFC |
| C. | IMF |
| D. | WTO |
| Answer» B. IFC | |
| 25. |
_____________ leads to increasingly the standard of living of developing economics. |
| A. | Privatization |
| B. | Globalization |
| C. | Liberalization |
| D. | Bank of Trade |
| Answer» C. Liberalization | |
| 26. |
_________ records all international transactions that involve creation of assets and liabilities in foreign currencies. |
| A. | Capital Account |
| B. | Reserve Account |
| C. | Current Accountant |
| D. | Saving Account |
| Answer» B. Reserve Account | |
| 27. |
__________ also relates to international assets and liabilities for such transactions which the country s monetary authorities use to such transactions which the country s monetary authorities use to settle the deficits and surpluses. |
| A. | Reserve Account |
| B. | Capital Account |
| C. | Saving Account |
| D. | Current Account |
| Answer» B. Capital Account | |
| 28. |
FDI Stands for _____________ |
| A. | Foreign Direct Intermediation |
| B. | Foreign Domestic Investment |
| C. | Foreign Direct Investment |
| D. | Foreign direct Investment |
| Answer» E. | |
| 29. |
Bretton woods is a town in _________________ in US |
| A. | Boston |
| B. | Seattle |
| C. | Hampshire |
| D. | Denver |
| Answer» D. Denver | |
| 30. |
G -10 Countries included all of the following, except ____________ |
| A. | Belgium |
| B. | Canada |
| C. | France |
| D. | China |
| Answer» E. | |
| 31. |
Under _______ monetary unit is associated with the value of circulating gold coins. |
| A. | Gold Specie |
| B. | Gold Exchange |
| C. | Gold Bullion |
| D. | Silver |
| Answer» B. Gold Exchange | |
| 32. |
Under ____________ there is no interference of monetary authorities to decide exchange rate. |
| A. | Fixed |
| B. | Floating |
| C. | Both of these |
| D. | Fixing |
| Answer» C. Both of these | |
| 33. |
In Smithsonian Agreement, the variation zone was increased from 1% to ____________ % |
| A. | 2.25 |
| B. | 2.5 |
| C. | 2.15 |
| D. | 2.35 |
| Answer» B. 2.5 | |
| 34. |
In ____________ president Nixon announced that dollar would no longer be convertible into gold. |
| A. | 1944 |
| B. | 1945 |
| C. | 1970 |
| D. | 1971 |
| Answer» E. | |
| 35. |
During BWS, value of USD was fixed at 1-ounce gold is equal to USD______________ |
| A. | 25 |
| B. | 30 |
| C. | 45 |
| D. | 35 |
| Answer» E. | |
| 36. |
Euro is official currency of _____ member states. |
| A. | 25 |
| B. | 28 |
| C. | 19 |
| D. | 18 |
| Answer» D. 18 | |
| 37. |
In Spot market, exchange of currencies take place on ___________ |
| A. | T +1 |
| B. | T+2 |
| C. | T+0 |
| D. | T+4 |
| Answer» C. T+0 | |
| 38. |
SBI Account with HSBC in Uk is an example of ___________ |
| A. | Loro |
| B. | Nostro |
| C. | Vostro |
| D. | SWIFT |
| Answer» C. Vostro | |
| 39. |
Spot rate is also called as ________________ |
| A. | Future Price |
| B. | Forward Price |
| C. | Swap Price |
| D. | Current Market Price |
| Answer» E. | |
| 40. |
Inverse quote for 1GBP = 99.1100/9900 INR is INR GBP____________ |
| A. | 0.0101/0.0100 |
| B. | 0.0100/0.0105 |
| C. | 0.0105/0.0100 |
| D. | 0.0100/0.0101 |
| Answer» E. | |
| 41. |
If USD SGD 1.5423/33; SGD GBP 0.3323/33; GBP USD quotation is __________________ |
| A. | 1.9512/444 |
| B. | 1.9441/512 |
| C. | 1.9444/512 |
| D. | 1.9512/441 |
| Answer» C. 1.9444/512 | |
| 42. |
An account which is held within a domestic country by a foreign bank, in the currency of domestic country _________________ |
| A. | Loro |
| B. | Nostro |
| C. | Vostro |
| D. | SWIFT |
| Answer» D. SWIFT | |
| 43. |
Holgate principle, if bid > Ask, Swap points for forward rate are to be_________ |
| A. | Added |
| B. | Subtracted |
| C. | Multiplied |
| D. | Divided |
| Answer» C. Multiplied | |
| 44. |
_________ deal in currencies to benefit from movements in currency exchange markets. |
| A. | Arbitrageurs |
| B. | Hedgers |
| C. | Speculators |
| D. | Spread |
| Answer» D. Spread | |
| 45. |
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 | |
| 46. |
_________ is the smallest unit by which a currency quotation can change. |
| A. | PIP |
| B. | Bid |
| C. | Ask |
| D. | Spread |
| Answer» B. Bid | |
| 47. |
__________ is real time gross settlement funds transfer system operated by the United states Federal reserve banks. |
| A. | Swift |
| B. | Chips |
| C. | Chaps |
| D. | Fedwire |
| Answer» E. | |
| 48. |
Currently the largest foreign exchange market in the world is ____________-. |
| A. | New York |
| B. | Tokyo |
| C. | Frankfurt |
| D. | London |
| Answer» E. | |
| 49. |
_________ is market where foreign currencies are bought and sold. |
| A. | Stock Market |
| B. | Forex Market |
| C. | Capital Market |
| D. | Debt Market |
| Answer» D. Debt Market | |
| 50. |
SWIFT stands for ____________ |
| A. | System of World Interbank Financial Transportation |
| B. | Society wide interest & financial telecommunications |
| C. | Society for worldwide interbank Financial transportation |
| D. | Society for Worldwide interbank Financial Tr |
| Answer» B. Society wide interest & financial telecommunications | |