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