McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Management Studies (BMS) .
| 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 | |
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