McqMate
| 1. |
Maintaining a foreign currency account is helpful to |
| A. | Avoid transaction cost. |
| B. | Avoid exchange risk. |
| C. | Avoid both transaction cost and exchange risk. |
| D. | Avoid exchange risk and domestic currency depreciation |
| Answer» C. Avoid both transaction cost and exchange risk. | |
| 2. |
India’s foreign exchange rate system is? |
| A. | Free float |
| B. | Managed float |
| C. | Fixed . |
| D. | Fixed target of band |
| Answer» B. Managed float | |
| 3. |
Hedging transaction is indicated by |
| A. | Transactions in odd amounts |
| B. | Presentation of documentary support. |
| C. | Frequency of such transactions. |
| D. | None of the above. |
| Answer» D. None of the above. | |
| 4. |
The acronym SWIFT stands for |
| A. | Safety Width In Financial Transactions. |
| B. | Society for Worldwide International Financial Telecommunication. |
| C. | Society for Worldwide Interbank Financial Telecommunication. |
| D. | Swift Worldwide Information for Financial Transaction. |
| Answer» C. Society for Worldwide Interbank Financial Telecommunication. | |
| 5. |
Indirect rate in foreign exchange means |
| A. | The rate quoted with the units of home currency kept fixed. |
| B. | The rate quoted with units of foreign currency kept fixed. |
| C. | The rate quoted in terms of a third currency. |
| D. | None of the above. |
| Answer» A. The rate quoted with the units of home currency kept fixed. | |
| 6. |
The maxim 'buy low; sell high' is applicable for |
| A. | Quotation of Pound-Sterling. |
| B. | Indirect rates. |
| C. | Direct rates. |
| D. | USDOLLARS. |
| Answer» C. Direct rates. | |
| 7. |
India is facing continuous deficit in its balance of payments. In the foreign exchange market rupee is expected to |
| A. | Depreciate. |
| B. | Appreciate. |
| C. | Show no specific tendency. |
| D. | Depreciate against currencies of the countries with positive balance of payment and appreciate against countries with negative balance of payment. |
| Answer» A. Depreciate. | |
| 8. |
The effect of speculation on exchange rate is |
| A. | It causes violent fluctuations in exchange rate. |
| B. | It aggravates the market trends. |
| C. | Either or both of A and B. |
| D. | Neither A nor B. |
| Answer» C. Either or both of A and B. | |
| 9. |
The demand for domestic currency in the foreign exchange market is indicated by the following transactions in balance of payment |
| A. | Export of goods and services |
| B. | Import of goods and services. |
| C. | Export of goods and services and capital inflows. |
| D. | Import of goods and services and capital outflows. |
| Answer» C. Export of goods and services and capital inflows. | |
| 10. |
If PPP holds |
| A. | The nominal exchange rate will not change. |
| B. | The real exchange rate will not change. |
| C. | Both real and nominal exchange rates will not change. |
| D. | Both real and nominal exchange will move together |
| Answer» B. The real exchange rate will not change. | |
| 11. |
The forward US dollar is quoted at premium against Indian Rupees. This implies |
| A. | Money market rates are higher in India than in the US. |
| B. | Money market rates are lower in India than in the US. |
| C. | Market yield is higher in US than in India. |
| D. | Dollar has a better value than Indian Rupee. |
| Answer» A. Money market rates are higher in India than in the US. | |
| 12. |
Determination of forward rates is explained by |
| A. | Uncovered interest arbitrage. |
| B. | Purchasing power parity theory. |
| C. | Demand and Supply for spot currency. |
| D. | None of the above. |
| Answer» D. None of the above. | |
| 13. |
According to International Fisher Effect |
| A. | Forward Premium for a currency indicates its depreciation in future. |
| B. | Forward Premium for a currency indicates its appreciation in future. |
| C. | Forward Rates and spot rates are not linked |
| D. | Forward Rates are based on expected future spot rates. |
| Answer» B. Forward Premium for a currency indicates its appreciation in future. | |
| 14. |
Cash and carry arbitrage explains the determination of |
| A. | Forward Rates for currencies. |
| B. | Spot rates for currencies. |
| C. | Both forward and spot rates for currencies. |
| D. | Penalty for non-execution of forward contracts. |
| Answer» A. Forward Rates for currencies. | |
| 15. |
LIBOR is: |
| A. | the interest rate commonly charged for loans between banks. |
| B. | the average inflation rate in European countries. |
| C. | the maximum loan rate ceiling on loans in the international money |
| D. | the maximum interest rate offered on bonds that are issued in London. |
| Answer» D. the maximum interest rate offered on bonds that are issued in London. | |
| 16. |
The margin for a currency future should be maintained with the clearinghouse by |
| A. | The buyer. |
| B. | The seller. |
| C. | Both the buyer and the seller. |
| D. | Either the buyer or the seller as per the agreement between them. |
| Answer» C. Both the buyer and the seller. | |
| 17. |
The marking to market in respect of a currency future refers to |
| A. | Putting up for sale specific lot of futures. |
| B. | Adjusting the margin money of buyer and seller to reflect the current value of futures |
| C. | Quoting rates for different maturities. |
| D. | Allotting futures among different brokers. |
| Answer» B. Adjusting the margin money of buyer and seller to reflect the current value of futures | |
| 18. |
For the balance kept in the margin account for futures |
| A. | Interest is paid at riskless rate. |
| B. | Interest is paid at LIBOR rate |
| C. | Interest is paid for the surplus over the required minimum. |
| D. | No interest is paid. |
| Answer» D. No interest is paid. | |
| 19. |
A feature of currency option that distinguishes it from other derivatives is |
| A. | It carries premium to be paid up front. |
| B. | It is optional to enter into the contract. |
| C. | The buyer has only right, but no obligation to execute the contract |
| D. | The seller has the right, but no obligation to execute the contract. |
| Answer» C. The buyer has only right, but no obligation to execute the contract | |
| 20. |
The following statement with respect to currency option is wrong |
| A. | Call option will be used by exporters. |
| B. | Put option gives the buyer the right to sell the foreign currency. |
| C. | Foreign currency- Rupee option is available in India. |
| D. | An American option can be executed on any day during its currency. |
| Answer» A. Call option will be used by exporters. | |
| 21. |
For contingency exposure of foreign exchange, the best derivative that can be used to hedge is |
| A. | Forwards. |
| B. | Futures. |
| C. | Options. |
| D. | Swaps. |
| Answer» C. Options. | |
| 22. |
The strike price under an option is |
| A. | The price at which the option is auctioned |
| B. | The exchange rate which the currencies are agreed to be exchanged under the contract |
| C. | . Lower of the market price and the agreed price |
| D. | None of the above |
| Answer» B. The exchange rate which the currencies are agreed to be exchanged under the contract | |
| 23. |
An option at-the-money when |
| A. | The strike price is greater than the spot price, in the case of a call option. |
| B. | The strike price is greater than spot price, in the case of a put option. |
| C. | The option has a ready market. |
| D. | The strike price and the spot price are the same. |
| Answer» D. The strike price and the spot price are the same. | |
| 24. |
Where an option is out of the money |
| A. | The premium will be refunded to the buyer. |
| B. | The buyer is unable to take up the contract |
| C. | The seller gains to the extent of the premium receiv |
| Answer» C. The seller gains to the extent of the premium receiv | |
| 25. |
Banks permitted to run option book is required to fulfill the condition of |
| A. | Continuous profit for at least three years. |
| B. | Minimum CRAR of 9%. |
| C. | Minimum net worth of Rs.200 crores. |
| D. | All the above. |
| Answer» D. All the above. | |
| 26. |
Zero coupon swap is an arrangement |
| A. | Involving exchange of zero coupon bonds. |
| B. | Whereby only one party makes payment periodically. |
| C. | Whereby one of the counter-parties makes payment in lump sum instead of periodically. |
| D. | None of the above. |
| Answer» C. Whereby one of the counter-parties makes payment in lump sum instead of periodically. | |
| 27. |
The acronym CIRCUS stands for |
| A. | Current Interest Rate Swap. |
| B. | Circular Currency Swap. |
| C. | Combined Income Range Currency Swap. |
| D. | Combined Interest Rate and Currency Swap. |
| Answer» D. Combined Interest Rate and Currency Swap. | |
| 28. |
A forward rate agreement helps the user to |
| A. | Fix the cost of borrowing. |
| B. | Reduce the cost of borrowing. |
| C. | Cover exchange risk |
| D. | Avail tax benefit |
| Answer» A. Fix the cost of borrowing. | |
| 29. |
The swap arrangement where principal amounts are not exchanged, but periodical payments will be a |
| A. | Currency swap |
| B. | Cross currency interest swap |
| C. | Interest rate swap. |
| D. | Non-Financial swap. |
| Answer» C. Interest rate swap. | |
| 30. |
An interest rate cap is a series of |
| A. | Call options |
| B. | Put options. |
| C. | Periodical payments |
| D. | Differential payments. |
| Answer» A. Call options | |
| 31. |
FRAs can’t+ be used for |
| A. | Hedging. |
| B. | Arbitraging. |
| C. | Speculating. |
| D. | Any of the Above. |
| Answer» D. Any of the Above. | |
| 32. |
The true cost of hedging transaction exposure by using forward market is |
| A. | Difference between agreed rate and spot rate at the time of entering into contract. |
| B. | Difference between agreed rate and spot rate on the due date of contract |
| C. | Forward premium / discount annualiz |
| Answer» B. Difference between agreed rate and spot rate on the due date of contract | |
| 33. |
Hedging with options is best recommended for |
| A. | Hedging receivables. |
| B. | Hedging payables. |
| C. | Hedging contingency exposures. |
| D. | Hedging foreign currency loans |
| Answer» C. Hedging contingency exposures. | |
| 34. |
A firm operating in India cannot hedge its foreign currency exposure through |
| A. | Forwards. |
| B. | Futures. |
| C. | Options. |
| D. | None of the above. |
| Answer» B. Futures. | |
| 35. |
Foreign currency exposures can be avoided by |
| A. | Entering into forward contracts. |
| B. | Denominating the transaction in domestic currency. |
| C. | Exposure netting |
| D. | Maintaining foreign currency accounts. |
| Answer» B. Denominating the transaction in domestic currency. | |
| 36. |
The following method does not result in sharing of an exchange risk between importer and exporter |
| A. | Denominating in a third currency. |
| B. | Denominating partly in importer's currency and partly in exporter's currency. |
| C. | Entering a exchange rate clause in the contract. |
| D. | Denominating in domestic currency. |
| Answer» D. Denominating in domestic currency. | |
| 37. |
Leading refers to |
| A. | Advancing of receivables. |
| B. | Advancing of payables. |
| C. | Advancing payments either receivables or payables. |
| D. | Advancing of receivables and delaying of payables. |
| Answer» C. Advancing payments either receivables or payables. | |
| 38. |
Translation exposure arises in respect of items translated at |
| A. | Current rate. |
| B. | Historical rate. |
| C. | Average rate. |
| D. | All of the above. |
| Answer» A. Current rate. | |
| 39. |
Translation loss is |
| A. | A loss to the parent company. |
| B. | A loss to the subsidiary company. |
| C. | A notional loss. |
| D. | An actual loss. |
| Answer» C. A notional loss. | |
| 40. |
The translation exposure is positive when |
| A. | Exposed assets are lesser than exposed liabilities. |
| B. | Exposed liabilities are lesser than exposed assets. |
| C. | The exposure results in profit. |
| D. | There are no liabilities. |
| Answer» B. Exposed liabilities are lesser than exposed assets. | |
| 41. |
For the purpose of translations, current rate refers to |
| A. | The rate current at the time of transaction. |
| B. | The rate prevailing on the date of the balance sheet. |
| C. | The rate prevailing on the date of preparation of the balance sheet. |
| D. | The spot rate |
| Answer» B. The rate prevailing on the date of the balance sheet. | |
| 42. |
Exposed assets are those translated at |
| A. | Historical rate. |
| B. | Average rate. |
| C. | Current rate. |
| D. | Current rate or average rate. |
| Answer» C. Current rate. | |
| 43. |
This is not established method of translation |
| A. | Current rate method. |
| B. | Monetary/Non-monetary method. |
| C. | Temporary meth |
| D. | D. Current/Non-current method |
| Answer» C. Temporary meth | |
| 44. |
A positive exposure will lead to when the currency of the subsidiary company appreciates. |
| A. | Translation gain. |
| B. | Translation loss |
| C. | Exchange gain. |
| D. | Exchange loss. |
| Answer» A. Translation gain. | |
| 45. |
Translation loss may occur when |
| A. | Exposed assets exceed exposed liabilities and foreign currency appreciates. |
| B. | Exposed assets exceed exposed liabilities and foreign currency depreciates. |
| C. | The subsidiary's balance sheet shows a loss. |
| D. | The foreign currency depreciates. |
| Answer» B. Exposed assets exceed exposed liabilities and foreign currency depreciates. | |
| 46. |
The following method cannot be used for managing translation exposure |
| A. | Forward contract. |
| B. | Option contract |
| C. | Exposure netting. |
| D. | Leading and lagging. |
| Answer» B. Option contract | |
| 47. |
Economic exposure does not deal with |
| A. | Changes in real exchange rates. |
| B. | Future cash flow of the firm |
| C. | Expected exchange rate changes. |
| D. | None of the above. |
| Answer» C. Expected exchange rate changes. | |
| 48. |
The __________ refers to the orderly relationship between spot and forward currency exchange rates and the rates of interest between countries. |
| A. | one-price rule |
| B. | interest-rate parity |
| C. | purchasing-power parity |
| D. | exchange-power parity |
| Answer» B. interest-rate parity | |
| 49. |
The __________ is especially well suited to offer hedging protection against transactions risk exposure. |
| A. | forward market |
| B. | spot market |
| C. | transactions market |
| D. | inflation-rate market |
| Answer» A. forward market | |
| 50. |
A multinational company that is faced with mild interference up to complete confiscation of all assets is encountering__________. |
| A. | translation risk exposure |
| B. | transactions risk exposure |
| C. | political risk exposure |
| D. | a very bad day |
| Answer» C. political risk exposure | |
| 51. |
Which of the following is not an example of an international trade draft? |
| A. | Time draft. |
| B. | Sight draft. |
| C. | Both the first and second answers are correct |
| D. | Usance draft |
| Answer» C. Both the first and second answers are correct | |
| 52. |
A group of European countries have formed a union and created a common currency known as __________. |
| A. | the EU currency |
| B. | the European Union |
| C. | the EMU |
| D. | the Euro |
| Answer» D. the Euro | |
| 53. |
The forward exchange rate __________. |
| A. | is the rate today for exchanging one currency for another for immediate delivery |
| B. | is the rate today for exchanging one currency for another at a specific future date |
| C. | is the rate today for exchanging one currency for another at a specific location on a specific future date |
| D. | is the rate today for exchanging one currency for another at a specific location for immediate delivery |
| Answer» B. is the rate today for exchanging one currency for another at a specific future date | |
| 54. |
The spot exchange rate __________. |
| A. | is the rate today for exchanging one currency for another for immediate delivery |
| B. | is the rate today for exchanging one currency for another at a specific future date |
| C. | is the rate today for exchanging one currency for another at a specific location on a specific future date |
| D. | is the rate today for exchanging one currency for another at a specific location for immediate delivery |
| Answer» A. is the rate today for exchanging one currency for another for immediate delivery | |
| 55. |
What are the forms of assistance that the World Bank provides to its members? |
| A. | Technical and financial |
| B. | Political and financial |
| C. | Political and economic |
| D. | Technical and military |
| Answer» A. Technical and financial | |
| 56. |
The World Bank Group is made up of how many organisations? |
| A. | 3 |
| B. | 5 |
| C. | 8 |
| D. | 10 |
| Answer» B. 5 | |
| 57. |
The most liquid asset among the following is? |
| A. | Gold |
| B. | Share |
| C. | Cash |
| D. | land |
| Answer» C. Cash | |
| 58. |
The system operated by the WTO is known as the |
| A. | multilateral trading system |
| B. | bilateral trading system |
| C. | ratified system |
| D. | ungratified system |
| Answer» A. multilateral trading system | |
| 59. |
The price at which a market maker is prepared to buy (a currency) or borrow (money) is termed as |
| A. | spot rate |
| B. | bid rate |
| C. | ask price |
| D. | forward rate |
| Answer» B. bid rate | |
| 60. |
A deposit or borrowing domiciled outside the home country of the currency is called as |
| A. | foreign bond |
| B. | euro bond |
| C. | euro currency |
| D. | domestic bond |
| Answer» C. euro currency | |
| 61. |
The price at which a market maker is prepared to sell (a currency) or lend (money) |
| A. | forward rate |
| B. | sport rate |
| C. | bid rate |
| D. | offer rate |
| Answer» D. offer rate | |
| 62. |
Bretton woods agreement arrived at in |
| A. | July 1994 |
| B. | July 1954 |
| C. | June 1960 |
| D. | June 1964 |
| Answer» A. July 1994 | |
| 63. |
A contract that gives the buyer the right to buy commodity or a foreign currency from the seller at a fixed price is called as |
| A. | put option |
| B. | call option |
| C. | cross option |
| D. | currency swap |
| Answer» B. call option | |
| 64. |
CIF stands for |
| A. | Cost, interest, freight |
| B. | Cost, income, freight |
| C. | Cost, insurance, freight |
| D. | Customs, insurance, freight |
| Answer» C. Cost, insurance, freight | |
| 65. |
The market where long term securities (shares, bonds, etc) are bought and sold is called as |
| A. | money market |
| B. | capital market |
| C. | primary market |
| D. | secondary market |
| Answer» B. capital market | |
| 66. |
A bank located usually in another country that provides service for another bank is |
| A. | Foreign bank |
| B. | Central bank |
| C. | Correspondent bank |
| D. | World bank |
| Answer» C. Correspondent bank | |
| 67. |
_______________ is a process of taking advantage of differentials in interest rates of two currencies while eliminating exchange risk. |
| A. | Hedging |
| B. | Insurance |
| C. | Covered – Interest Arbitrage |
| D. | Exposure |
| Answer» C. Covered – Interest Arbitrage | |
| 68. |
Quotation where the price of one unit of foreign currency is given in terms of local currency units is called as |
| A. | Indirect quotation |
| B. | . Direct quotation |
| C. | Open-ended quotation |
| D. | Close – ended quotation |
| Answer» B. . Direct quotation | |
| 69. |
FOB stands for |
| A. | Freight on board |
| B. | Free on board |
| C. | Flexible on board |
| D. | Future on board |
| Answer» B. Free on board | |
| 70. |
An operation in order to protect the domestic currency value of an asset or a liability that is denominated in foreign currency is called as |
| A. | Hedging |
| B. | Hermes |
| C. | Indexation |
| D. | Leading |
| Answer» A. Hedging | |
| 71. |
Difference between buying and selling rates in an exchange rate or interest rate quotation is known as |
| A. | Strike price |
| B. | Spread |
| C. | Swap points |
| D. | Spot rate |
| Answer» B. Spread | |
| 72. |
The price which one subsidiary or one unit of business charges from another for selling goods or providing services is |
| A. | Transfer price |
| B. | Strike price |
| C. | Spot price |
| D. | Forward rate |
| Answer» A. Transfer price | |
| 73. |
The bond that does not pay any interest and issued at a price lower than its reimbursement value is called as |
| A. | Zero coupon bond |
| B. | Coupon bond |
| C. | Euro bond |
| D. | Domestic bond |
| Answer» A. Zero coupon bond | |
| 74. |
International Development Association established in |
| A. | 1970 |
| B. | 1962 |
| C. | 1960 |
| D. | 1958 |
| Answer» C. 1960 | |
| 75. |
International Finance Corporation established in |
| A. | 1956 |
| B. | 1960 |
| C. | 1966 |
| D. | 1970 |
| Answer» A. 1956 | |
| 76. |
____________ means using short-term forward contracts to offset “paper” gains and losses on the long-term assets and liabilities of foreign subsidiaries. |
| A. | Hedging transaction exposure |
| B. | Hedging balance-sheet exposure |
| C. | Hedging economic exposure |
| D. | Hedging cost exposure |
| Answer» B. Hedging balance-sheet exposure | |
| 77. |
Which exchange rate theory focuses on the inflation – exchange rate relationship? |
| A. | Interest rate parity |
| B. | International Fisher Effect |
| C. | Purchasing power parity |
| D. | Traditional Model |
| Answer» C. Purchasing power parity | |
| 78. |
The exchange rate prevailing at a financial reporting date |
| A. | Closing exchange rate |
| B. | Opening exchange rate |
| C. | Fixed exchange rate |
| D. | Fluctuating exchange rate |
| Answer» A. Closing exchange rate | |
| 79. |
The bank account of a non-resident of a country, where the amount of currency in the account cannot be transferred to another country is called as |
| A. | Nostro account |
| B. | Blocked Account |
| C. | Foreign account |
| D. | Capital account |
| Answer» B. Blocked Account | |
| 80. |
Funds that cannot be remitted from the subsidiary to the parent due to host government restrictions is known as |
| A. | Close – ended funds |
| B. | Open – ended funds |
| C. | Blocked funds |
| D. | Restricted funds |
| Answer» C. Blocked funds | |
| 81. |
Exchange rate between currency A and currency B, given the values of currencies A and B with respect to a third currency is known as |
| A. | Golden standard |
| B. | Flexible exchange rate |
| C. | Fixed exchange rate |
| D. | Cross exchange rate A |
| Answer» D. Cross exchange rate A | |
| 82. |
Agreement to exchange one currency for another at a specified exchange rate and date is |
| A. | Currency swap |
| B. | Swap points |
| C. | Currency put option |
| D. | Currency call option |
| Answer» A. Currency swap | |
| 83. |
Long– term securities denominated in two currencies is called as |
| A. | Euro bond |
| B. | Dual – currency bonds |
| C. | Foreign bonds |
| D. | Euro dollar deposit. |
| Answer» B. Dual – currency bonds | |
| 84. |
Foreign exchange transactions involve monetary transactions |
| A. | among residents of the same country |
| B. | between residents of two countries only |
| C. | between residents of two or more countries |
| D. | among residents of at least three countries |
| Answer» C. between residents of two or more countries | |
| 85. |
A foreign currency account maintained by a bank abroad is its |
| A. | nostro account |
| B. | vostro account |
| C. | loro account |
| D. | foreign bank account |
| Answer» A. nostro account | |
| 86. |
Non-resident Bank Accounts’ refer to |
| A. | nostro account |
| B. | vostro account |
| C. | accounts opened in offshore centers |
| D. | foreign bank account |
| Answer» B. vostro account | |
| 87. |
The number of nostro accounts that can be maintained by a bank in a particular currency is |
| A. | One |
| B. | not exceeding three |
| C. | minimum two |
| D. | no such limit |
| Answer» D. no such limit | |
| 88. |
Full fledged money changers are authorized to undertake |
| A. | only sale transactions |
| B. | only purchase transactions |
| C. | all types of foreign exchange transactions |
| D. | purchase and sale of foreign currency notes, coins and travelers cheques |
| Answer» D. purchase and sale of foreign currency notes, coins and travelers cheques | |
| 89. |
. IMF augments its resources by borrowing under |
| A. | General arrangements to borrow |
| B. | New arrangements to borrow |
| C. | Trust funds |
| D. | All the above |
| Answer» D. All the above | |
| 90. |
The abbreviations SDR stands for |
| A. | Special Drawing Rights |
| B. | Specific Drawing Rights |
| C. | Special Depository Rules |
| D. | Specific Depository Rules |
| Answer» A. Special Drawing Rights | |
| 91. |
The value of SDR is |
| A. | equivalent to one US dollar |
| B. | based on value of gold |
| C. | average of the value of US dollar and Euro |
| D. | based on basket of five currencies |
| Answer» D. based on basket of five currencies | |
| 92. |
The term World Bank refers to |
| A. | IBRD |
| B. | IDA |
| C. | Both IBRD and IDA |
| D. | IFC |
| Answer» C. Both IBRD and IDA | |
| 93. |
. IBRD lending is not available for |
| A. | middle income countries |
| B. | low income countries |
| C. | multilateral agencies |
| D. | developed countries |
| Answer» C. multilateral agencies | |
| 94. |
The eligibility to borrow from IDA is based on |
| A. | relative poverty |
| B. | lack of creditworthiness to borrow on market terms |
| C. | good policy performance |
| D. | all the above |
| Answer» D. all the above | |
| 95. |
Financial products of IFC does not include |
| A. | loans |
| B. | equity participation |
| C. | risk management products |
| D. | none of the above |
| Answer» D. none of the above | |
| 96. |
MIGA stands for |
| A. | Multilateral Investment Guarantee Agency |
| B. | Multilateral Institutional and Government Agencies |
| C. | Mutual Interest Guaranteeing Agencies |
| D. | Mutual Institutional and Government Agencies |
| Answer» A. Multilateral Investment Guarantee Agency | |
| 97. |
Guarantee provided by MIGA to private investors covers risk of |
| A. | transfer restriction |
| B. | expropriation |
| C. | breach of contract |
| D. | all the above |
| Answer» D. all the above | |
| 98. |
The activities of ADB include |
| A. | project financing |
| B. | guaranteeing loans |
| C. | both a and b |
| D. | risk management products |
| Answer» C. both a and b | |
| 99. |
A ‘credit’ in balance of payments indicates |
| A. | Accumulation of bank balances abroad |
| B. | Foreign direct investment received into the country |
| C. | Earning of foreign exchange by the country |
| D. | Earning of foreign exchange or incurring of liability abroad or decrease in asset abroad |
| Answer» D. Earning of foreign exchange or incurring of liability abroad or decrease in asset abroad | |
| 100. |
The current account of balance of payments does not include |
| A. | Trade in goods |
| B. | Trade in services |
| C. | Income on investments |
| D. | None of the above |
| Answer» D. None of the above | |
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