Subject: International Finance Code - MBA Colleges In Pune

Subject: International FinanceCode: Fin-404International Finance MCQ QuestionQ.1 Global bond market consists of all bonds sold by issued companies, governments,or other firmsA.B.C.D.within their own countriesoutside their own countriesto London banksto developing nations onlyQ.2 more instability in currency is called asA.B.C.D.country riskfinancial riskcurrency riskliquidity riskQ. 3. Foreign bonds issued in Japan are knownA.B.C.D.bulldog bondsdragon bondsYankee bondssamurai bondsQ. 4. Largest number of buyers and sellers, greater theA.B.C.D.liquidityspeculationhedgingforward rateQ. 5. Exchange rate entail delivery of trade currency within two business days knowasA.B.C.D.forward ratefuture ratespot ratebid rate

Q. 6. Differences in nominal interest rates are removed in exchange rate isA.B.C.D.fisher effectLeontief paradox.Combined equilibrium theory.purchasing power parityQ. 7. Simplicity with which bondholders and shareholders can change theirinvestments into cash is knownA.B.C.D.barterhedgingarbitrageliquidityQ. 8. Eurobonds are admired becauseA.B.C.D.they are less risky than traditional bondsEuropean companies are considered very stableof absence of government regulationthey are always denominated in euroQ. 9. Bid quote is forA.B.C.D.sellerbuyerhedgerspeculatorQ. 10. Bid-ask spread in foreign exchange market is theA.B.C.D.price of currency in foreign exchange marketdifference between bid and ask quotes for a currencyprice at which a bank will buy a currencyprice a bank will pay for a currencyQ. 11. Not aim of international capital market isA.B.C.D.preserving hard currencies to finance trade deficitsreducing cost of money to borrowersreducing investor riskexpanding money supply for borrowersQ. 12 which of following causes do investors employ foreign exchange market

A.B.C.D.currency hedgingcurrency speculationcurrency conversionall of aboveQ. 13 in 1944 international accord is recognized asA.B.C.D.Breton Wood AgreementExchange AgreementInternational TradeFisher EffectQ. 14. If a company agreements today for several future date of real currencyexchange, they will be building use of aA.B.C.D.stock ratestock ratefutures rateforward rateQ. 15. International Money Market is for aboutA.B.C.D.2 years3 years5 years1 yearsQ. 16. Case of foreign exchangeA.B.C.D.Exchange of claims denominated in another currency.exchange of bank depositsExchange of cash issued by a foreign central bank.All of above.Q. 17. Gold standard introduced inA.B.C.D.1913199018761944Q. 18. Market in which currencies buy and sell and their prices settle on is called theA. Eurocurrency market

B. international capital marketC. international bond marketD. foreign exchange marketQ. 19. International capital marketA.B.C.D.innovative financial instrumentsinformation technologyderegulationforeign exchange ratesQ. 20 Order cost is cost of theA.B.C.D.executing orderprocessing orderopportunity costnone of theseQ. 21 International capital marketA. limits available set of lending opportunitiesB. increases overall portfolio risk for investorsC. allows investors to reduce risk by holding international securities whoseprice move independentlyD. is easily accessible to everyoneQ. 22. Ask quote is forA.B.C.D.sellerbuyerhedgerspeculatorQ. 23. A firm that purpose to connect sellers and buyers of foreign currencydenominated bank deposits is entitledA.B.C.D.a wholesalera brokera bankan investorQ. 24 A simultaneous purchase and sale of foreign exchange for two different dates

A.B.C.D.currency devaluecurrency swapcurrency valuationcurrency exchangeQ. 25 if your local currency is in variable form and foreign currency is in fixed formquotation will be:A.B.C.D.indirectdirectlocal formforeign formQ. 26 in a quote exchange rate, currency that is to be purchase with another currencyis called:A.B.C.D.liquid currencyforeign currencylocal currencybase currencyQ. 27 holding an inventory haveA.B.C.D.buying costselling costopportunity costexchange rate riskQ. 28. Today, important factor that result in augmentation in international bondmarket isA.B.C.D.low interest rateshigh interest ratesmoderate interest ratesall of aboveQ. 29 WorldA.B.C.D.interbank marketEurocurrency marketsecurities exchangesover-the-counter marketQ. 30 Governments enforce currency limitations to

A.B.C.D.protect a currency from speculatorskeep resident individuals and businesses from investing in other nationspreserve hard currencies to finance trade deficits or repay debtsall of aboveQ. 31 in primary markets, the first time issued shares to be publicly traded, in stockmarkets is considered asA.B.C.D.traded offeringpublic marketsissuance offeringinitial public offeringQ. 32 The exchange markets and over the counter markets are considered as two typesofA.B.C.D.floating marketrisky marketsecondary marketprimary marketQ. 33 the current market price of common stock is 15 and the conversion ratereceived on conversion is 320 to calculateA.B.C.D. 3,800 2,800 4,800 5,800Q. 34 the transaction cost of trading of financial instruments in centralized market isclassified asA.B.C.D.flexible costslow transaction costshigh transaction costsconstant costsQ. 35 The bonds that are backed by cash flow from project and are sold to financeparticular project are classified asA.B.C.D.finance bondsrevenue bondsfinancing bondsproject bonds

Q. 36 the equation that shows the relationship between expected inflation, real interestrates, and nominal interest rates is called theA. interest rate parity equation.B. Fisher equation.C. GDP deflator.D. net inflation index.Q. 37 which of the following is not an example of a frequently used Euro-instrument?A. EurobondB. Euro noteC. Euro stockD. Euro commercial paperQ. 38 when was IMF established?A Dec. 27, 1945B Jan. 30, 1947C Jan.1, 1946D Sept. 24, 1947Q. 39 which of the following is NOT a restriction to international trade?A Exchange ControlsB GATT.C SubsidiesD Quotas.Q. 40 Balance of payments of a country includes:A.Balance of tradeB.Capital receipts and paymentsC.Saving and investment accountD.Both (a) and (b)

Q. 41. It helps countries to meet deficit in balance of payments:A.IMFB.WTOC.World BankD.UNOQ. 42 Export of goods is called trade in:A.Visible goodsB.Invisible goodsC.Basic goodsD.Non-real goods

A. buying cost B. selling cost C. opportunity cost D. exchange rate risk Q. 28. Today, important factor that result in augmentation in international bond market is A. low interest rates B. high interest rates C. moderate interest rates D. all of above Q. 29 World A. interb