McqMate
| 1. |
GATT stands for __________ |
| A. | general agreement on tariffs and trade |
| B. | general agreement on transport and trade |
| C. | general arrangement on tariffs and trade |
| D. | general agreement on transport and trade |
| Answer» A. general agreement on tariffs and trade | |
| 2. |
As per Smithsonian Agreement 1 ounce of gold = USD _ |
| A. | 30 |
| B. | 35 |
| C. | 36 |
| D. | 38 |
| Answer» D. 38 | |
| 3. |
In Loro Account, Loro means ______ |
| A. | our |
| B. | theirs |
| C. | yours |
| D. | my |
| Answer» B. theirs | |
| 4. |
GBP/ USD = 1.0376-90. In this case USD is also known as ___Currency |
| A. | base |
| B. | foreign |
| C. | variable |
| D. | transaction |
| Answer» C. variable | |
| 5. |
Satistical residue is a part of _______ |
| A. | errors and ommissions |
| B. | current account |
| C. | capital account |
| D. | reserve account |
| Answer» A. errors and ommissions | |
| 6. |
EUR/USD = 1.2596-1.2620, Percentage Spread = _________ |
| A. | 0.0024 |
| B. | 1.2608 |
| C. | 0.19 |
| D. | 0.38 |
| Answer» C. 0.19 | |
| 7. |
If NPV is zero, the project is _________ |
| A. | financially viable |
| B. | breakeven |
| C. | financially not viable |
| D. | slower |
| Answer» B. breakeven | |
| 8. |
EUR/INR 68.0000-68.0030 & INR 1.4550-1.4600 what is the arbitage oppportunity |
| A. | 2228 |
| B. | 0 |
| C. | 2882 |
| D. | 2828 |
| Answer» D. 2828 | |
| 9. |
___ risk is also called as "Accounting Exposure" |
| A. | transaction |
| B. | economic |
| C. | translation |
| D. | transmittion |
| Answer» C. translation | |
| 10. |
ADR stands for ____________ |
| A. | asian depository receipt |
| B. | american depository receipt |
| C. | australian depository receipt |
| D. | africa depository receipt |
| Answer» B. american depository receipt | |
| 11. |
In quote of 1 USD = INR 60, is a home country |
| A. | india |
| B. | usa |
| C. | france |
| D. | russia |
| Answer» A. india | |
| 12. |
The world’s major trading currencies, which are free to float against each other, include all of the following except |
| A. | british pound |
| B. | japanese yen |
| C. | us dollar |
| D. | spanish peso |
| Answer» D. spanish peso | |
| 13. |
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» B. bop | |
| 14. |
Fund based services includes all of the following except . |
| A. | bill discounting |
| B. | factoring |
| C. | lease financing |
| D. | m&a services |
| Answer» D. m&a services | |
| 15. |
The Exchange rate is the |
| A. | opportunity cost at which goods are produced domestically |
| B. | balance of trade ratio of one country to another |
| C. | price of one country\s currency expressed in terms of another country\s currency |
| D. | amount of currency that can be purchased with one ounce of gold |
| Answer» C. price of one country\s currency expressed in terms of another country\s currency | |
| 16. |
Nations that have major economic expansion attract |
| A. | imports |
| B. | exports |
| C. | fdi |
| D. | privatization |
| Answer» C. fdi | |
| 17. |
Fee Based services includes all of the following except . |
| A. | merchant banking |
| B. | factoring |
| C. | m&a services |
| D. | custodian services |
| Answer» B. factoring | |
| 18. |
Current account includes all of the following, except . |
| A. | merchandise balance |
| B. | services balance |
| C. | fdi |
| D. | unilateral transfers |
| Answer» C. fdi | |
| 19. |
Reserves are held in the following forms, except . |
| A. | foreign currency |
| B. | gold |
| C. | sdr |
| D. | silver |
| Answer» D. silver | |
| 20. |
Statistical residue is a part of . |
| A. | errors & omissions |
| B. | current account |
| C. | capital account |
| D. | reserve account |
| Answer» A. errors & omissions | |
| 21. |
SDR is an international reserve asset created by . |
| A. | imf |
| B. | wto |
| C. | world bank |
| D. | ibrd |
| Answer» A. imf | |
| 22. |
FDI in BOP is covered under . |
| A. | official reserve account |
| B. | current account |
| C. | capital account |
| D. | balancing items |
| Answer» C. capital account | |
| 23. |
Under Exchange rate system, there is no interference of monetary authorities to decide exchange rate. |
| A. | fixed |
| B. | floating |
| C. | mixed |
| D. | pegged |
| Answer» B. floating | |
| 24. |
Under Exchange rate system, value of currency is decided by the market forces of demand and supply. |
| A. | fixed |
| B. | floating |
| C. | mixed |
| D. | pegged |
| Answer» B. floating | |
| 25. |
In Spot market, exchange of currencies take place on basis. |
| A. | t + 1 |
| B. | t + 0 |
| C. | t + 2 |
| D. | t + 3 |
| Answer» B. t + 0 | |
| 26. |
An account which is held within a domestic country by a foreign bank, in a currency of domestic country is known as account |
| A. | loro |
| B. | nostro |
| C. | vostro |
| D. | swift |
| Answer» C. vostro | |
| 27. |
SBI A/c with HSBC in UK is an example of |
| A. | loro |
| B. | nostro |
| C. | vostro |
| D. | swift |
| Answer» B. nostro | |
| 28. |
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» A. dkk/usd 0.1722 - 0.1726 | |
| 29. |
100 INR/JPY is an indirect quote for |
| A. | india |
| B. | japan |
| C. | us |
| D. | china |
| Answer» A. india | |
| 30. |
The quote 1 GBP = INR 99.85 is a direct quote for . |
| A. | india |
| B. | britain |
| C. | us |
| D. | china |
| Answer» A. india | |
| 31. |
In Holgate’s principle, if Bid > Ask, Swap points of forward rate are to be |
| A. | added |
| B. | subtracted |
| C. | multiplied |
| D. | divided |
| Answer» B. subtracted | |
| 32. |
is the smallest unit by which a currency quotation can change. |
| A. | pip |
| B. | bid |
| C. | ask |
| D. | spread |
| Answer» A. pip | |
| 33. |
If spot USD/INR is 50, and six months forward rate is 51 then AFM is |
| A. | 1% |
| B. | 4% |
| C. | 2% |
| D. | 3% |
| Answer» B. 4% | |
| 34. |
is a market where foreign currencies are bought & sold. |
| A. | stock market |
| B. | forex market |
| C. | capital market |
| D. | debt market |
| Answer» B. forex market | |
| 35. |
Theory states that the exchange rate between currencies of two countries should be equal to the ratio of the countries price levels. |
| A. | irp |
| B. | ppp |
| C. | fishers |
| D. | marshalls |
| Answer» B. ppp | |
| 36. |
If formula I of Fishers effect is positive, borrow and invest in . |
| A. | foreign, home |
| B. | foreign, foreign |
| C. | home, home |
| D. | home, foreign |
| Answer» D. home, foreign | |
| 37. |
is a standardized contract to exchange one currency for another at a |
| A. | futures contract |
| B. | options contract |
| C. | swaps |
| D. | forward contract |
| Answer» A. futures contract | |
| 38. |
Foreign currency forward market is |
| A. | over the counter unorganized market |
| B. | organised market without trading |
| C. | organised, listed market |
| D. | unorganised listed market |
| Answer» A. over the counter unorganized market | |
| 39. |
An option giving the buyer of the option the right to buy but not an obligation to buy a currency is called |
| A. | call option |
| B. | put option |
| C. | forward option |
| D. | futures option |
| Answer» A. call option | |
| 40. |
contacts are bilateral contracts. |
| A. | forward |
| B. | futures |
| C. | options |
| D. | swaps |
| Answer» A. forward | |
| 41. |
bond is issued in a local market by a foreign borrower, denominated in local currency |
| A. | foreign bond |
| B. | euro bond |
| C. | domestic bond |
| D. | euro credit |
| Answer» A. foreign bond | |
| 42. |
bond is issued in a local market by a domestic borrower, usually denominated in local currency |
| A. | foreign bond |
| B. | euro bond |
| C. | domestic bond |
| D. | euro credit |
| Answer» A. foreign bond | |
| 43. |
is a negotiable instrument issued by a US bank, representing non-US company stock, trading on the US stock Exchange. |
| A. | adr |
| B. | gdr |
| C. | idr |
| D. | euro bonds |
| Answer» A. adr | |
| 44. |
is a negotiable instrument issued by an international depository bank, representing a foreign company stock, trading on global stock Exchanges. |
| A. | adr |
| B. | gdr |
| C. | idr |
| D. | euro bonds |
| Answer» B. gdr | |
| 45. |
In ADR/GDR process, _ issues depository receipts in foreign markets. |
| A. | custodian bank |
| B. | depository bank |
| C. | issuing company |
| D. | lead manager |
| Answer» B. depository bank | |
| 46. |
IPO stands for . |
| A. | indian profit organisation |
| B. | investment & public offerings |
| C. | initial prospectus offering |
| D. | initial public offering |
| Answer» D. initial public offering | |
| 47. |
was introduced at a time when forex reserves of the country were low. |
| A. | fera |
| B. | fema |
| C. | gatt |
| D. | exim |
| Answer» A. fera | |
| 48. |
can authorize a person/company to deal in foreign exchange. |
| A. | sebi |
| B. | rbi |
| C. | irda |
| D. | parliament |
| Answer» B. rbi | |
| 49. |
frames rules and guidelines for Forex Business in India |
| A. | rbi |
| B. | sebi |
| C. | irda |
| D. | fedai |
| Answer» D. fedai | |
| 50. |
If IRR > WACC, then the Project must be |
| A. | accepted |
| B. | rejected |
| C. | discarded |
| D. | reviewed |
| Answer» A. accepted | |
| 51. |
is known as Benefit/cost ratio |
| A. | profitability index |
| B. | pay back period |
| C. | npv |
| D. | irr |
| Answer» A. profitability index | |
| 52. |
Lower the better applies to method of Capital budgeting |
| A. | npv |
| B. | pay back period |
| C. | irr |
| D. | profitability index |
| Answer» B. pay back period | |
| 53. |
is not a type of foreign exchange risk. |
| A. | transaction risk |
| B. | translation risk |
| C. | economic risk |
| D. | natural risk |
| Answer» D. natural risk | |
| 54. |
All are methods of Internally managing foreign exchange risk except, . |
| A. | exposure netting |
| B. | leading & lagging |
| C. | denomination in local currency |
| D. | forward contract |
| Answer» D. forward contract | |
| 55. |
If two banks are quoting the following GBP rates: Bank A : Rs 78.9810 - 79.1110 and Bank B : Rs 79. 0110 - 79.2350. The arbitrage opportunity will be . |
| A. | 100 |
| B. | 0 |
| C. | 124 |
| D. | 142 |
| Answer» B. 0 | |
| 56. |
When a company has receipts & payments in the same foreign currency due at the same time, it can use technique of managing foreign exchange risk. |
| A. | risk sharing agreement |
| B. | leading |
| C. | lagging |
| D. | exposure netting (matching) |
| Answer» D. exposure netting (matching) | |
| 57. |
An investor looking at reducing his risk is known as . |
| A. | speculator |
| B. | hedger |
| C. | arbitrageur |
| D. | trader |
| Answer» B. hedger | |
| 58. |
analyses if the benefits will justify the project cost/investment done. |
| A. | economic analysis |
| B. | technical analysis |
| C. | managerial analysis |
| D. | market analysis |
| Answer» A. economic analysis | |
| 59. |
Spot USD/INR is 60.5600/60.5700 and one month SWAP points are 600/700 then outright forward rate will be . |
| A. | 60.6200/60.6400 |
| B. | 60.6400/60.62 00 |
| C. | 61.1600/61.2700 |
| D. | 61.2700/61.1600 |
| Answer» A. 60.6200/60.6400 | |
| 60. |
Spot CHF/DEM rate is 0.7865/78 and one month forward points are 25-20 then what will be the one month forward CHF/DEM quote |
| A. | 1.0365 - 0.9878 |
| B. | 0.7890 - 0.7898 |
| C. | 0.5365 - 0.5878 |
| D. | 0.7840 - 0.7858 |
| Answer» D. 0.7840 - 0.7858 | |
| 61. |
The world’s major trading currencies, which are a free to float against each other, include all of the following except__________________ |
| A. | British Pound |
| B. | Japanese Yen |
| C. | US Dollar |
| D. | Spanish Peso |
| Answer» D. Spanish Peso | |
| 62. |
National that have major economic expansion attract _____________________ |
| A. | Imports |
| B. | Exports |
| C. | FDI |
| D. | Privatization |
| Answer» C. FDI | |
| 63. |
IMF stands for ____________ |
| A. | International Monetary Fund |
| B. | Indian Monetary Fund |
| C. | International Monetary Finance |
| D. | Indian Monetary Finance |
| Answer» A. International Monetary Fund | |
| 64. |
In the foreign exchange market, the _______________ of one country is traded for the ________________of another country. |
| A. | Currency, Currency |
| B. | Currency, Financial instruments |
| C. | Currency goods |
| D. | Goods Goods |
| Answer» A. Currency, Currency | |
| 65. |
Systematic record of economic transaction of a country during a given period of time is _______________-- |
| A. | ADR |
| B. | BOP |
| C. | GDR |
| D. | IFRS |
| Answer» B. BOP | |
| 66. |
Funs based services includes all of the following except _______________- |
| A. | Bill discounting |
| B. | Factoring |
| C. | Lease Financing |
| D. | M & A Services |
| Answer» D. M & A Services | |
| 67. |
_________ deals with the global rules of trade between nations. |
| A. | WTO |
| B. | IFC |
| C. | IBRD |
| D. | World Bank |
| Answer» A. WTO | |
| 68. |
Exchange rate is the __________________ |
| A. | Opportunity cost at which goods are produced domestically |
| B. | Balance of trade ratio of one country to another |
| C. | Price of one country’s currency expressed in terms of another country’s currency |
| D. | Amount if currency that can be purchased with 1ounce of gold |
| Answer» C. Price of one country’s currency expressed in terms of another country’s currency | |
| 69. |
Current account includes all of the following except _______________- |
| A. | Merchandise Balance |
| B. | Service Balance |
| C. | FDI |
| D. | Unilateral Transfers |
| Answer» C. FDI | |
| 70. |
Reserves are held in following forms, except __________________ |
| A. | Foreign Currency |
| B. | Gold |
| C. | SDR |
| D. | Silver |
| Answer» D. Silver | |
| 71. |
Statistical residue is a part of ____________________ |
| A. | Errors and Omissions |
| B. | Current Account |
| C. | Capital Account |
| D. | Reserve Account |
| Answer» A. Errors and Omissions | |
| 72. |
Difference between the value of merchandise exports and imports is ____________________ |
| A. | BOP |
| B. | BOT |
| C. | Capital Account |
| D. | Official Reserve Account |
| Answer» B. BOT | |
| 73. |
Sale or purchase of gold in BOP is covered under _____________________ |
| A. | Capital Account |
| B. | Current Account |
| C. | Official Reserve Account |
| D. | Balancing Items |
| Answer» C. Official Reserve Account | |
| 74. |
SDR is an international reserve asset created by_____________________ |
| A. | IMF |
| B. | WTO |
| C. | World Bank |
| D. | IBRD |
| Answer» A. IMF | |
| 75. |
FDI in Bop is covered under ________________ |
| A. | Capital Account |
| B. | Current Account |
| C. | Official Reserve Account |
| D. | Balancing items |
| Answer» A. Capital Account | |
| 76. |
FDI Stands for _____________ |
| A. | Foreign Direct Intermediation |
| B. | Foreign Domestic Investment |
| C. | Foreign Direct Investment |
| D. | Foreign direct Investment |
| Answer» D. Foreign direct Investment | |
| 77. |
Bretton woods is a town in _________________ in US |
| A. | Boston |
| B. | Seattle |
| C. | Hampshire |
| D. | Denver |
| Answer» C. Hampshire | |
| 78. |
G -10 Countries included all of the following, except ____________ |
| A. | Belgium |
| B. | Canada |
| C. | France |
| D. | China |
| Answer» D. China | |
| 79. |
Under _______ monetary unit is associated with the value of circulating gold coins. |
| A. | Gold Specie |
| B. | Gold Exchange |
| C. | Gold Bullion |
| D. | Silver |
| Answer» A. Gold Specie | |
| 80. |
Under ____________ there is no interference of monetary authorities to decide exchange rate. |
| A. | Fixed |
| B. | Floating |
| C. | Both of these |
| D. | Fixing |
| Answer» B. Floating | |
| 81. |
In Smithsonian Agreement, the variation zone was increased from 1% to ____________ %’ |
| A. | 2.25 |
| B. | 2.5 |
| C. | 2.15 |
| D. | 2.35 |
| Answer» A. 2.25 | |
| 82. |
In ____________ president Nixon announced that dollar would no longer be convertible into gold. |
| A. | 1944 |
| B. | 1945 |
| C. | 1970 |
| D. | 1971 |
| Answer» D. 1971 | |
| 83. |
During BWS, value of USD was fixed at 1-ounce gold is equal to USD______________ |
| A. | 25 |
| B. | 30 |
| C. | 45 |
| D. | 35 |
| Answer» D. 35 | |
| 84. |
Euro is official currency of _____ member states. |
| A. | 25 |
| B. | 28 |
| C. | 19 |
| D. | 18 |
| Answer» C. 19 | |
| 85. |
In Spot market, exchange of currencies take place on ___________ |
| A. | T +1 |
| B. | T+2 |
| C. | T+0 |
| D. | T+4 |
| Answer» B. T+2 | |
| 86. |
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» C. Vostro | |
| 87. |
SBI Account with HSBC in Uk is an example of ___________ |
| A. | Loro |
| B. | Nostro |
| C. | Vostro |
| D. | SWIFT |
| Answer» B. Nostro | |
| 88. |
Spot rate is also called as ________________ |
| A. | Future Price |
| B. | Forward Price |
| C. | Swap Price |
| D. | Current Market Price |
| Answer» D. Current Market Price | |
| 89. |
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» D. 0.0100/0.0101 | |
| 90. |
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» B. 1.9441/512 | |
| 91. |
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» A. DKK /USD 0.1722-0.1726 | |
| 92. |
Holgate principle, if bid > Ask, Swap points for forward rate are to be_________ |
| A. | Added |
| B. | Subtracted |
| C. | Multiplied |
| D. | Divided |
| Answer» B. Subtracted | |
| 93. |
_________ is the smallest unit by which a currency quotation can change. |
| A. | PIP |
| B. | Bid |
| C. | Ask |
| D. | Spread |
| Answer» A. PIP | |
| 94. |
_________ deal in currencies to benefit from movements in currency exchange markets. |
| A. | Arbitrageurs |
| B. | Hedgers |
| C. | Speculators |
| D. | Spread |
| Answer» C. Speculators | |
| 95. |
Currently the largest foreign exchange market in the world is ____________-. |
| A. | New York |
| B. | Tokyo |
| C. | Frankfurt |
| D. | London |
| Answer» D. London | |
| 96. |
__________ 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» D. Fedwire | |
| 97. |
Spot used INR 60- and six-months forward is USD INR 61.AFM is ____________ |
| A. | 3.33% |
| B. | 1.13% |
| C. | 2.33% |
| D. | 4.33% |
| Answer» A. 3.33% | |
| 98. |
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» A. System of World Interbank Financial Transportation | |
| 99. |
_________ is market where foreign currencies are bought and sold. |
| A. | Stock Market |
| B. | Forex Market |
| C. | Capital Market |
| D. | Debt Market |
| Answer» C. Capital Market | |
| 100. |
_________ theory states that the exchange rate between currencies of two countries should be equal to the ratio of the countries price levels. |
| A. | IRP |
| B. | PPP |
| C. | Fisher`s |
| D. | T Bills |
| Answer» B. PPP | |
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