MCQOPTIONS
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MCQOPTIONS
This section includes 1419 Mcqs, each offering curated multiple-choice questions to sharpen your General Management knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
The most liquid asset among the following is? |
| A. | old |
| B. | hare |
| C. | ash |
| D. | and |
| Answer» D. and | |
| 2. |
The index of Financial Inclusion has been launched for the first time in 2008 |
| A. | onfederation of Indian Industries (CII) |
| B. | ederation of Indian Chamber of Commerce and Industry (FICCI) |
| C. | ational Council of Applied Economic Research (NCAER) |
| D. | ndian Council for Research on International Economic Relations (ICRIER) |
| Answer» E. | |
| 3. |
India s foreign exchange rate system is? |
| A. | ixed target |
| B. | anaged float |
| C. | ree float |
| D. | ixed and Float |
| Answer» C. ree float | |
| 4. |
Bretton woods agreement arrived at in |
| A. | 1-07-94 |
| B. | 1-07-54 |
| C. | 1-06-60 |
| D. | 1-06-64 |
| Answer» B. 1-07-54 | |
| 5. |
The price at which a market maker is prepared to sell a currency or lend money |
| A. | orward rate |
| B. | port rate |
| C. | id rate |
| D. | ffer rate |
| Answer» E. | |
| 6. |
The system operated by the WTO is known as the |
| A. | ultilateral trading system |
| B. | ilateral trading system |
| C. | atified system |
| D. | ngratified system |
| Answer» B. ilateral trading system | |
| 7. |
The term Euro currency Market refers to |
| A. | he countries which have adopted Euro as their currency |
| B. | he market in which Euro is exchanged for other currencies |
| C. | he market where the borrowing and lending of currencies take place outside the country of issue |
| D. | he international foreign exchange market |
| Answer» D. he international foreign exchange market | |
| 8. |
Nations that have major economic expansion attract |
| A. | mports |
| B. | irect Foreign Investment |
| C. | xports |
| D. | rivatization |
| Answer» C. xports | |
| 9. |
Gifts and Relief are |
| A. | erchandise Payment |
| B. | ervice Payment |
| C. | actory Income |
| D. | ransfer payment |
| Answer» E. | |
| 10. |
The world’s four major trading currencies are all free to float against each other. They include all the following except. |
| A. | he British Pound |
| B. | he Japanese Yen |
| C. | he Spanish Peso |
| D. | he US Dollar |
| Answer» D. he US Dollar | |
| 11. |
The exchange rate prevailing at a financial reporting date |
| A. | losing exchange rate |
| B. | pening exchange rate |
| C. | ixed exchange rate |
| D. | luctuating exchange rate |
| Answer» B. pening exchange rate | |
| 12. |
Which exchange rate theory focuses on the inflation exchange rate relationship? |
| A. | nterest rate parity |
| B. | nternational Fisher Effect |
| C. | urchasing power parity |
| D. | raditional Model |
| Answer» D. raditional Model | |
| 13. |
International Finance Corporation established in |
| A. | 956 |
| B. | 960 |
| C. | 966 |
| D. | 970 |
| Answer» B. 960 | |
| 14. |
The maximum amount that an Indian company can issue as ADR/GDR in a year is |
| A. | SD 500 million |
| B. | SD 30 million |
| C. | SD 20 million |
| D. | o monetary ceiling |
| Answer» E. | |
| 15. |
A bank located usually in another country that provides service for another bank is |
| A. | oreign bank |
| B. | entral bank |
| C. | orrespondent bank |
| D. | orld Bank |
| Answer» D. orld Bank | |
| 16. |
The market where long term securities (shares, bonds, etc. are bought and sold is called as |
| A. | oney market |
| B. | apital market |
| C. | rimary market |
| D. | econdary market |
| Answer» E. | |
| 17. |
Foreign exchange transactions involve monetary transactions |
| A. | mong residents of the same country |
| B. | etween residents of two countries only |
| C. | etween residents of two or more countries |
| D. | mong residents of at least three countries |
| Answer» D. mong residents of at least three countries | |
| 18. |
Long-term securities denominated in two currencies is called as |
| A. | uro bond |
| B. | ual currency bonds |
| C. | oreign bonds |
| D. | uro dollar deposit |
| Answer» C. oreign bonds | |
| 19. |
Agreement to exchange one currency for another at a specified exchange rate and date is |
| A. | urrency swap |
| B. | wap points |
| C. | urrency put option |
| D. | urrency call option |
| Answer» B. wap points | |
| 20. |
US Dollar denominated bond issued in US domestic Market |
| A. | ankee Bond |
| B. | ull dog Bond |
| C. | amurai Bond |
| D. | ual Bond |
| Answer» B. ull dog Bond | |
| 21. |
Which of the following theories suggests that firms seek to penetrate new markets over time? |
| A. | heory of Comparative Advantage |
| B. | mperfect Market Theory |
| C. | roduct cycle theory |
| D. | one of the above |
| Answer» D. one of the above | |
| 22. |
In a quote exchange rate, the currency that is to purchase with another currency is called |
| A. | iquid currency |
| B. | oreign Currency |
| C. | ocal Currency |
| D. | ase currency |
| Answer» E. | |
| 23. |
IMF is firm of |
| A. | 90 Member Countries |
| B. | 82 Member Countries |
| C. | 86 Member Countries |
| D. | 83 Member Countries |
| Answer» E. | |
| 24. |
The margin for a currency future should be maintained with the clearing house by |
| A. | he buyer |
| B. | he seller |
| C. | oth the buyer and the seller |
| D. | ither the buyer or the seller as per the agreement between them |
| Answer» D. ither the buyer or the seller as per the agreement between them | |
| 25. |
International Monetary Fund is headquartered in |
| A. | ashington, United States |
| B. | ew York City, United States |
| C. | eneva, Switzerland |
| D. | venue Du Mont Blanc, Switzerland |
| Answer» B. ew York City, United States | |
| 26. |
Cash and carry arbitrage explains the determination of |
| A. | orward Rates for currencies |
| B. | pot rates for currencies |
| C. | oth forward and spot rates for currencies |
| D. | enalty for non-execution of forward contracts |
| Answer» B. pot rates for currencies | |
| 27. |
Which of the following institutions cannot be included in the international financial and monetary system? |
| A. | TO |
| B. | ank for International Settlements |
| C. | MF |
| D. | orld Bank |
| Answer» B. ank for International Settlements | |
| 28. |
The following statement with respect to currency option is wrong |
| A. | all option will be used by exporters |
| B. | ut option gives the buyer the right to sell the foreign currency |
| C. | oreign currency- Rupee option is available in India |
| D. | n American option can be executed on any day during its currency |
| Answer» B. ut option gives the buyer the right to sell the foreign currency | |
| 29. |
European Economic Community founded in |
| A. | 957 |
| B. | 958 |
| C. | 963 |
| D. | 968 |
| Answer» B. 958 | |
| 30. |
In India currency-notes issue system is based on |
| A. | roportional Reserve System |
| B. | inimum Reserve System |
| C. | ixed Exchange Rate System |
| D. | ully Convertibility System |
| Answer» C. ixed Exchange Rate System | |
| 31. |
The marking to market of a futures contract is done |
| A. | aily, based on the opening price for the day |
| B. | eekly, based on the opening price for the week |
| C. | aily, based on the closing price for the previous day |
| D. | eekly based on the closing price for the previous week |
| Answer» D. eekly based on the closing price for the previous week | |
| 32. |
Which of the countries did not become a member of the Economic and Monetary Union as on Jan 1 1999. |
| A. | ritain |
| B. | rance |
| C. | ermany |
| D. | taly |
| Answer» B. rance | |
| 33. |
The intrinsic value of a Call option is |
| A. | trike price - Underlying Price |
| B. | nderlying price - Strike Price |
| C. | trike price > Underlying price |
| D. | trike price < Underlying price |
| Answer» C. trike price > Underlying price | |
| 34. |
An option at-the-money when |
| A. | he strike price is greater than the spot price, in the case of a call option |
| B. | he strike price is greater than spot price, in the case of a put option |
| C. | he option has a ready market |
| D. | he strike price and the spot price are the same |
| Answer» E. | |
| 35. |
Japan yen denominated Bond issued in Japan domestic Market |
| A. | ankee Bond |
| B. | amurai Bond |
| C. | ull dog Bond |
| D. | ual Bond |
| Answer» C. ull dog Bond | |
| 36. |
International Financial Corporation established in the year |
| A. | 948 |
| B. | 952 |
| C. | 962 |
| D. | 956 |
| Answer» E. | |
| 37. |
Forward contract is an agreement to buy or sell an assets on |
| A. | pecified price |
| B. | pecified time |
| C. | pecified date |
| D. | pecified volume |
| Answer» B. pecified time | |
| 38. |
Foreign currency exposures can be avoided by |
| A. | ntering into forward contracts |
| B. | enominating the transaction in domestic currency |
| C. | xposure netting |
| D. | aintaining foreign currency accounts |
| Answer» C. xposure netting | |
| 39. |
The cost of hedging through option includes |
| A. | ption premium |
| B. | nterest on option premium till due date of the contract |
| C. | oth a and b |
| D. | ptimum premium and difference between option price and spot price |
| Answer» D. ptimum premium and difference between option price and spot price | |
| 40. |
Euro is the official currency of |
| A. | ll the States of Europe |
| B. | ll the states of European Union |
| C. | nly 12 of the states of European Union |
| D. | nly 10 of the States of European Union |
| Answer» C. nly 12 of the states of European Union | |
| 41. |
FRAs can’t be used for |
| A. | edging |
| B. | rbitraging |
| C. | peculating |
| D. | ny of the Above |
| Answer» E. | |
| 42. |
An interest rate cap is a series of |
| A. | all options |
| B. | ut options |
| C. | eriodical payments |
| D. | ifferential payments |
| Answer» B. ut options | |
| 43. |
Under the interest rate option, the buyer |
| A. | voids unfavourable movement in interest rates |
| B. | ains from favorable movement in interest rates |
| C. | oth a and b |
| D. | ains nothing, only the seller gains |
| Answer» D. ains nothing, only the seller gains | |
| 44. |
The forward exchange rate __________ |
| A. | s the rate today for exchanging one currency for another for immediate delivery |
| B. | s the rate today for exchanging one currency for another at a specific future date |
| C. | s the rate today for exchanging one currency for another at a specific location on a specific future date |
| D. | s the rate today for exchanging one currency for another at a specific location for immediate delivery |
| Answer» C. s the rate today for exchanging one currency for another at a specific location on a specific future date | |
| 45. |
A group of European countries have formed a union and created a common currency known as __________ |
| A. | he EU currency |
| B. | he European Union |
| C. | he EMU |
| D. | he Euro |
| Answer» E. | |
| 46. |
Purchasing-power parity (PPP) refers to__________ |
| A. | he concept that the same goods should sell for the same price across countries after exchange rates are taken into account |
| B. | he concept that interest rates across countries will eventually be the same |
| C. | he orderly relationship between spot and forward currency exchange rates and the rates of interest between countries |
| D. | he natural offsetting relationship provided by costs and revenues in similar market environments |
| Answer» B. he concept that interest rates across countries will eventually be the same | |
| 47. |
The first Indian company raised the fund by issuing Bond in US dollar in United States |
| A. | irtel |
| B. | ATA |
| C. | eliance |
| D. | ircel |
| Answer» D. ircel | |
| 48. |
The __________ is especially well suited to offer hedging protection against transactions risk exposure |
| A. | orward market |
| B. | pot market |
| C. | ransactions market |
| D. | nflation-rate market |
| Answer» B. pot market | |
| 49. |
Which of the following is not a reason for international investment? |
| A. | o provide an expected risk-adjusted return in excess of that required |
| B. | o gain access to important raw materials |
| C. | o produce products and/or services more efficiently than possible domestically |
| D. | nternational investments have less political risk than domestic investments |
| Answer» E. | |
| 50. |
Two tier exchange rate system is a form of |
| A. | ifferent exchange rate |
| B. | ixed rate |
| C. | ultiple exchange rate |
| D. | lexible rate |
| Answer» D. lexible rate | |