Sky Education

International Finance
Multiple choice question’s
1. IFRS stands for ________
a. International financial reporting standards
b. International financial recognition standards
c. International financial reporting solutions
d. International financial reporting solutions
2. Trade restriction is called as__________
a. Trade stopper
b. Trade barrier
c. Trade damage
d. Trade booster
3. International finance is an important tool
a. To find the exchange rates
b. Compare budgeting rates
c. Investment shares
d. Reserves
4. Factors responsible is an important tool
a. Increase in TRIPS
b. General agreement of tariffs and trade
c. World health organization
d. Financial market
5. __________ refers to the price of one currency against another currency
a. Exchange rate
b. Inflation rate
c. Import duty
d. Technological development
6. _________ characterized by increased economic activities , production ,
profitability and revenue
a. Goal trade
b. Trade barrier
c. Tax haven
d. Investment decision
7. The central feature of a __________ is that is law and other measures can be
used to evade or avoid the law or regulations of other juridictions
a. Goal trade
b. Trade barrier
c. Tax haven
d. Investment decision
8. ________ account is a summary statement of transactions in foreign
exchange in year
a. Balance of payment
b. Deficit budget
c. Surplus budget
d. Exchange reserve
9. Current account balance shows a country’s earning and payment in
_________
a. Foreign exchange
b. Silver
c. Gold
d. Cash
10.A________ transaction is one that gives rise to the receipt of fund by a
resident
a. Receipt
b. Payment
c. Loan
d. Profit
11._______ is the difference between is one between export and import of
goods
a. Trade balance
b. Economic globalization
c. Balance of payment
d. Transaction
[Link] account ________ will take place when credits are more and debit
are less
a. Surplus
b. Deficit
c. Loan
 d. Payment
[Link] of payment identity equation __________-
a. CA+FA=RA=0
b. CA+FA-RA=0
c. CA-FA=RAX0
d. CA/FA=RA=0
14.__________ System is the framework within which countries borrow ,lend ,
bu sell and make payment across political frontiers
a. International monetary system
b. International marketing system
c. Internal money standard
d. International monetary standard
[Link] system introduced the concept of __________ intervention as a mean of
ensuring protection of parity rates
a. Central bank
b. State bank
c. Rural bank
d. Mutual fund
[Link] _______ is also called the IMF’s fixed exchange rate system
a. Gold standard system
b. Bretton wood system
c. Monetary system
d. Money standard system
[Link] bank for reconstruction and development IBRD known as the
_______
a. International bank
b. World bank
c. Singapore bank
d. Mutual fund bank
[Link] of disadvantages of gold standard
a. Expensive standard
b. Less flexibility
c. Conflict with other objectives
d. Join the wrong rate
[Link] of fixed exchange rate
 a. Conflict with other objectives
b. Expensive standard
c. Sacrifice of internal stability
d. A fair weather friend
[Link] of flexible exchange rate system
a. Promotes economic development
b. Conflict with other objective
c. Less flexibility
d. Join at the wrong rate
[Link] exchange rate system is also known as_________ exchange rate
a. Pegged
b. Custodian
c. Fixed rate
d. Interest Rate
[Link] is determined by following formula_________
a. Spread =Ask-Bid
b. Spread=Ask +Bid
c. Spread=Bid-Ask
d. Spread=Bid –Ask
[Link] exchange ratio is also referred to as _____ market
a. Forex
b. Bond
c. Spot market
d. Future market
24._________ transfer is the quickest method of transferring the purchasing
power
a. Telegraphic
b. Dollar
c. Currency pair
d. Interest
[Link] in foreign exchange market are as follows_________
a. Foreign exchange brokers
b. Hedgers
c. Speculators
d. Bonds
[Link] for the need of foreign exchange market________
a. Transfer of purchasing power
b. Foreign exchange brokers
c. Retail client
d. Commercial bank
27.__________ theory aims to determine the adjustment needed to be made in
the exchange two rate of two currencies
a. Purchasing power parity theory
b. Technical analysis
c. Mixed forecasting
d. Spot currencies
28.__________ are a major fundamental forex analysis indicator
a. Interest rate
b. Money
c. Loan
d. Deposits
[Link] analysis is used by the investor alone or with ______ analysis
exclusively
a. Fundamental
b. Technical
c. Spot
d. Future
[Link] rate forecast are that the forecasts help in __________
a. Hedging function
b. Long term financing decision
c. Long term financing loan
d. Fundamental forecasting
[Link] of purchasing power parity are___________
a. Short term financing decision
b. Exchange market
c. Trade balances
d. Trade imbalances
[Link] of spot or binary options are ___________
a. One touch
b. contact lying
 c. Fixed assets
d. Cash contract
[Link] options the downside risk is limited to the ________ paid
a. Par
b. Premium
c. Discount
d. Trade balance
[Link] stands for ________ payment options trading foreign exchange
terminology
a. Single
b. Double
c. One touch
d. Cash
35._____ is currency held on deposit outside its home market
a. Eurocurrency
b. Currency option
c. Spot
d. Euro credit
36.A ______ is a contract that derivatives its value from the performance of an
underlying entity
a. Derivative
b. SWAP
c. Euro currency
d. Eurobonds
[Link] stands for _________ interbank offered rate
a. London
b. America
c. India
d. Dubai
[Link] center of Euro currency market are _______
a. Pune
b. London
c. Maxico
d. Mumbai
[Link] in the euro bond markets_________
 a. Loan
b. Future price
c. Payment in kind bonds
d. Spot price
[Link] swap agreement defines the ______ when the cash flow are to be paid
and the way they are accrued and calculated
a. Price
b. Duration
c. Dates
d. Day
41._____ refers to having the shares listed on one or more foreign exchange
a. Cross listing
b. Currency risk
c. Market risk
d. Depositary receipt
[Link] risk of being unable to sell your investment at a fair price and get your
money out when you want to is called _____
a. Concentration risk
b. Liquid risk
c. Credit risk
d. Inflation risk
[Link] risk of a loss in your purchasing power because the value of your
investments does not keep up with inflation is called as ________
a. Concentration risk
b. Liquid risk
c. Credit risk
d. Inflation risk
[Link] risk of outliving your saving is called as _________
a. Longevity risk
b. Liquidity risk
c. Credit risk
d. Inflation risk
[Link] stands for ___________
a. International Depositary Receipts
b. International Deposit Receipt
 c. Indian Depository Receipt
d. Indian Depositary Receipts
[Link] stands for __________
a. Foreign Existence Regulation Act
b. For Excise Regulation act
c. Foreign Exchange Rules act
d. Foreign Exchange Regulation Act
47._______ Involves the stimulation buying and selling of an assets in order to
profit from sall difference in price
a. Arbitrage
b. Swap
c. Option
d. Hedging
48._______ Accounts are generally held in foreign country by a domestic
country
a. LORO
b. VOSTRO
c. NOSTRO
d. SPOT
49.______ account are generally held by a foreign bank in our country with a
domestic bank
a. LORO
b. VOSTRO
c. NOSTRO
d. SPOT

50._______accounts are generally held by a 3rd party bank other than

maintaining bank or with whom account is maintained
a. LORO
b. VOSTRO
c. NOSTRO
d. SPOT