McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Management Studies (BMS) .
| 101. |
Money market instruments include all the following, except _____________ |
| A. | Commercial papers |
| B. | T -Bills |
| C. | Certificate of Deposit |
| D. | Equity shares |
| Answer» D. Equity shares | |
| 102. |
In Quote of 1$ = Rs.61, __________ is a home country. |
| A. | India |
| B. | US |
| C. | France |
| D. | Australia |
| Answer» A. India | |
| 103. |
If USD /CAD 1.1630, 3 months forward 1. 1675.Annualized interest rate CAD 6%, USD 4%. Arbitrage gain will be_____________ |
| A. | 0 |
| B. | 1078 |
| C. | 1087 |
| D. | 1870 |
| Answer» C. 1087 | |
| 104. |
PPP theory ____________government intervention. |
| A. | Ignores |
| B. | Includes |
| C. | Requires |
| D. | Fishers |
| Answer» A. Ignores | |
| 105. |
________ theory states that exchange rate between two currencies is directly affected by their interest rates. |
| A. | IRP |
| B. | PPP |
| C. | Fisher`s |
| D. | Home Foreign |
| Answer» C. Fisher`s | |
| 106. |
If formula I of Fishers effect is positive, Borrow ___________ , invest __________. |
| A. | Foreign, Home |
| B. | Foreign, Foreign |
| C. | Home, Home |
| D. | Home Foreign |
| Answer» D. Home Foreign | |
| 107. |
__________ is a standardized contract to exchange one currency for another at a special date in the future at a price (exchange rate) that is fixed on the purchase date. |
| A. | Futures Contract |
| B. | Options Contract |
| C. | Swaps |
| D. | Forward contract |
| Answer» A. Futures Contract | |
| 108. |
The _______ requires that an upfront margin to trade on an exchange. |
| A. | Currency forwards |
| B. | Currency options |
| C. | Currency FTF`s |
| D. | Currency Futures |
| Answer» D. Currency Futures | |
| 109. |
Which of the following is false ________ |
| A. | Futures contracts trade on a financial exchange |
| B. | Futures contracts are more liquid than forward contracts |
| C. | Futures contracts are marked to market |
| D. | Futures contracts allow fewer delivery options than forward contracts |
| Answer» B. Futures contracts are more liquid than forward contracts | |
| 110. |
Which of the following does the most to reduce default risk for futures contracts_________ |
| A. | High liquidity |
| B. | Flexible delivery arrangements |
| C. | Marking to market |
| D. | Credit checks for both buyers and sellers |
| Answer» C. Marking to market | |
| 111. |
Foreign currency forward market is ___________ |
| A. | An over the counter unorganized market |
| B. | Organized market without trading |
| C. | Organized listed market |
| D. | Unauthorized listed market |
| Answer» A. An over the counter unorganized market | |
| 112. |
Which of the following financial instruments is primarily used to transfer risk _____________ |
| A. | Bonds |
| B. | Home Mortgages |
| C. | Futures Contract |
| D. | Stocks |
| Answer» C. Futures Contract | |
| 113. |
An option giving the buyer of the option the right but not the obligation to buy a currency is _____________ |
| A. | Call option |
| B. | Put option |
| C. | Forward option |
| D. | Future option |
| Answer» A. Call option | |
| 114. |
Regulation _________ of federal Reserve Act imposed a ceiling on interest rates that could be paid on deposits by Banks in the US. |
| A. | P |
| B. | Q |
| C. | R |
| D. | M |
| Answer» B. Q | |
| 115. |
__________ bond is issued in a local market by a foreign borrower, denominated in local currency. |
| A. | Foreign |
| B. | Euro |
| C. | Domestic |
| D. | Euro Credit |
| Answer» A. Foreign | |
| 116. |
___________ once issued bonds with coupon rates tied to its financial performance. |
| A. | Electrolux |
| B. | Wait Disney |
| C. | Japan |
| D. | Infosys |
| Answer» B. Wait Disney | |
| 117. |
______________ is type of security listed on Luxembourg. |
| A. | ADR |
| B. | GDR |
| C. | IDR |
| D. | CDR |
| Answer» B. GDR | |
| 118. |
Level _________ ADR `s must comply with various SEC rule, including full registration and reporting requirements of SEC. |
| A. | I |
| B. | II |
| C. | III |
| D. | IV |
| Answer» C. III | |
| 119. |
ADR `s are dominated in _______ currency. |
| A. | US $ |
| B. | Euro |
| C. | GBP |
| D. | INR |
| Answer» A. US $ | |
| 120. |
In ADR and GDR process, _______ issues the depository Receipts in Foreign Markets. |
| A. | Custodian bank |
| B. | Depository Bank |
| C. | Issuing Company |
| D. | Lead manager |
| Answer» B. Depository Bank | |
| 121. |
The Dow Jones Industrial Average (DJIA) contains _________ of the largest and most influential companies (blue chip companies) is the US__________ |
| A. | 35 |
| B. | 25 |
| C. | 40 |
| D. | 30 |
| Answer» D. 30 | |
| 122. |
Required Return from an investment =____________ |
| A. | Risk free return + Risk premium |
| B. | Risk free Return – Risk Premium |
| C. | Risk free return x Risk premium |
| D. | Risk free Return / Risk Premium |
| Answer» A. Risk free return + Risk premium | |
| 123. |
IPO stands for ____________ |
| A. | Indian Profit Organization |
| B. | Investment and Public Offering |
| C. | Initial Public Offering |
| D. | Initial Prospectus Offering |
| Answer» C. Initial Public Offering | |
| 124. |
An unsponsored ADR, __________ |
| A. | Complies with regulatory reporting |
| B. | Is listed on International stock exchanges |
| C. | Trades in OTC market |
| D. | Is issued by a bank on behalf of foreign company whose equity serves as underlying asset |
| Answer» C. Trades in OTC market | |
| 125. |
________ was introduced at a time when forex reserves of the country were low. |
| A. | FERA |
| B. | FEMA |
| C. | GATT |
| D. | IMF |
| Answer» A. FERA | |
| 126. |
As per FEMA, no person, other than ________ would enter in any transactions of the foreign currency. |
| A. | Offshore banks |
| B. | Parliament |
| C. | Government |
| D. | Authorized Dealer |
| Answer» D. Authorized Dealer | |
| 127. |
The monetary penalty payable under FERA was nearly ___________times the amount involved. |
| A. | Three |
| B. | Five |
| C. | Two |
| D. | Six |
| Answer» B. Five | |
| 128. |
__________ implies investment made with an intent of obtaining an ownership stake in an enterprise domiciled in a country by an enterprise situated in some other country. |
| A. | FDI |
| B. | FPI |
| C. | Two |
| D. | Six |
| Answer» B. FPI | |
| 129. |
RBI has granted license to certain established firms, hotels and other organizations permitting them to deal in foreign currency notes, coins and travelers’ cheques. They are termed as ___________ |
| A. | Authorized Banks |
| B. | Authorized Dealers |
| C. | Authorized Money changers |
| D. | Authorized shopkeeper |
| Answer» C. Authorized Money changers | |
| 130. |
FEDAI stands for _____________ |
| A. | Foreign Exchange dealers act of India |
| B. | Foreign Exchange direct association of India |
| C. | Foreign exchange dealers association Index |
| D. | Foreign exchange dealers association of India |
| Answer» D. Foreign exchange dealers association of India | |
| 131. |
____________ can authorize a person / company to deal in foreign exchange. |
| A. | SEBI |
| B. | RBI |
| C. | IRDA |
| D. | Parliament |
| Answer» B. RBI | |
| 132. |
__________ is the process of analyzing and ranking proposed projects to determine which ones deserving of an investment. |
| A. | IPO |
| B. | Debt financing |
| C. | Capital Budgeting |
| D. | Budgeting |
| Answer» C. Capital Budgeting | |
| 133. |
Walmart opening a new retail outlet is an example of _______________ project. |
| A. | Expansion |
| B. | Regulatory |
| C. | Replacement |
| D. | R & D |
| Answer» A. Expansion | |
| 134. |
Net amount of all cash flowing in and out of the business, from all sources is ____________ cash flow. |
| A. | Incremental |
| B. | Total |
| C. | Terminal |
| D. | Capital budgeting |
| Answer» B. Total | |
| 135. |
_________ are the initial outlays required to analyse a project that cannot be recovered even if a project is accepted. |
| A. | Opportunity cost |
| B. | Externally |
| C. | Cannibalization |
| D. | Sunk cost |
| Answer» D. Sunk cost | |
| 136. |
___________ means transfer of corporate money from a foreign country back to its home country. |
| A. | Repatriation |
| B. | Capital Budgeting |
| C. | Withholding |
| D. | Holding |
| Answer» A. Repatriation | |
| 137. |
Lower the better applies to ___________ capital budgeting method. |
| A. | NPV |
| B. | Payback period |
| C. | IRR |
| D. | Profitability Index |
| Answer» B. Payback period | |
| 138. |
Formula of profitability index is ___________ |
| A. | PV of cash inflow / PV of cash outlay |
| B. | Pv of cash inflow – PV of cash outlay |
| C. | PV of cash inflow + Pv of cash outlay |
| D. | PV of cash outlay / PV of cash inflow |
| Answer» A. PV of cash inflow / PV of cash outlay | |
| 139. |
__________ monitors the balance of payments of its member nations. |
| A. | World Bank |
| B. | IMF |
| C. | WTO |
| D. | IFC |
| Answer» B. IMF | |
| 140. |
________ deals with the global rules of trade between nations. |
| A. | WTO |
| B. | IFC |
| C. | World Bank |
| D. | IMF |
| Answer» A. WTO | |
| 141. |
_________ supporters’ sustainable investments in the private sector. |
| A. | IFC |
| B. | World Bank |
| C. | IMF |
| D. | WTO |
| Answer» A. IFC | |
| 142. |
_____________ includes risk of loss from uniform political and government issues. |
| A. | Political Risk |
| B. | International Finance |
| C. | Imperfect Market |
| D. | Foreign Exchange risk |
| Answer» A. Political Risk | |
| 143. |
Due to imperfection in markets ___________ are restricted by a limit to invest and manage their portfolio. |
| A. | Investors |
| B. | Creditors |
| C. | Debtors |
| D. | Consumers |
| Answer» A. Investors | |
| 144. |
____________ to promote domestic investment and growth through capital Market. |
| A. | International Finance |
| B. | World Bank |
| C. | WTO |
| D. | IFC |
| Answer» A. International Finance | |
| 145. |
_________ it increases in flow of capital and investment to developing economics. |
| A. | Globalization |
| B. | Privatization |
| C. | Liberalization |
| D. | Balance of payment |
| Answer» A. Globalization | |
| 146. |
________ control over the monetary system of India. |
| A. | RBI |
| B. | IFC |
| C. | IMF |
| D. | WTO |
| Answer» A. RBI | |
| 147. |
_________ records all international transactions that involve creation of assets and liabilities in foreign currencies. |
| A. | Capital Account |
| B. | Reserve Account |
| C. | Current Accountant |
| D. | Saving Account |
| Answer» A. Capital Account | |
| 148. |
_____________ leads to increasingly the standard of living of developing economics. |
| A. | Privatization |
| B. | Globalization |
| C. | Liberalization |
| D. | Bank of Trade |
| Answer» B. Globalization | |
| 149. |
__________ also relates to international assets and liabilities for such transactions which the country’s monetary authorities use to such transactions which the country’s monetary authorities use to settle the deficits and surpluses. |
| A. | Reserve Account |
| B. | Capital Account |
| C. | Saving Account |
| D. | Current Account |
| Answer» A. Reserve Account | |
| 150. |
___________is a statistical residence. |
| A. | Balance of payment |
| B. | Balance of Trade |
| C. | Omissions |
| D. | Errors and omissions |
| Answer» D. Errors and omissions | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.