180+ International Finance Solved MCQs

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

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151.	Difference between except and import of goods and services______________.
A.	Balance of Trade
B.	Balance of Payment
C.	Capital Account
D.	Profit
Answer» A. Balance of Trade

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152.	Balance of Trade =Net earnings on exports ___________
A.	Net payment of Import
B.	Net payment of export
C.	Cost of Goods Sold
D.	Income Tax
Answer» A. Net payment of Import

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153.	Balance of Trade is a _________ concept.
A.	Wider
B.	Small
C.	Narrow
D.	Favorable
Answer» C. Narrow

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154.	BOP Stands for ___________
A.	Balance of Profit
B.	Balance of Payment
C.	Balance of Positive impact
D.	Balance of Profit in Trade
Answer» B. Balance of Payment

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155.	balance of payment = Current Account + balancing Item _____________
A.	Saving Account
B.	Fixed Deposit Account
C.	Capital Account
D.	Reserve Account
Answer» C. Capital Account

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156.	Balance of payment Identity equation ______________
A.	FA + RA + CA =0
B.	RA + CA+ FA = 0
C.	CA + FA+ RA = 0
D.	CA + FA = 0
Answer» C. CA + FA+ RA = 0

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157.	Balance of payment is a statement that records all __________ transactions between a country and the rest of the world.
A.	Goods
B.	Cash
C.	Credit
D.	Monetary
Answer» D. Monetary

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158.	IIP is a subset of the national _____________
A.	Statement
B.	Profit and Loan Account
C.	Balance sheet
D.	Financial Asset and Liability
Answer» C. Balance sheet

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159.	___________ was the first university implemented system for valuing currencies.
A.	Gold Exchange
B.	Gold Standard
C.	Silver Coin
D.	Bullions
Answer» B. Gold Standard

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160.	International Monetary fund which was given the task of implementing and monitoring the__________
A.	BWS
B.	IBRD
C.	Nixon Stock
D.	BSW
Answer» A. BWS

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161.	BWS came into effect in July______________
A.	1939
B.	1945
C.	1944
D.	1970
Answer» C. 1944

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162.	EURO is single currency of the European Monetary Union adopted on _______________
A.	January 1,1999
B.	January 1, 2000
C.	January 1, 1997
D.	January 1 1996
Answer» A. January 1,1999

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163.	__________ supports sustainable investments in the private sector in developing countries.
A.	IFC
B.	IMF
C.	World Bank
D.	RBI
Answer» A. IFC

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164.	Foreign Investment are recorded in the _________ of balance of payments.
A.	Current Account
B.	Saving Account
C.	Capital Account
D.	Fixed Deposit Account
Answer» C. Capital Account

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165.	___________ is widely used by Government for formulating policies for economy.
A.	BOP
B.	BOT
C.	FDI
D.	SDR
Answer» A. BOP

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166.	Under gold standard system, countries gold reserves were required to be in custody of _________
A.	Swiss Bank
B.	Central Bank
C.	Foreign Bank
D.	Reserve Bank
Answer» B. Central Bank

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167.	________ is also known as price quotation.
A.	Direct Quote
B.	Indirect Quote
C.	Spot Quote
D.	Spread Quote
Answer» A. Direct Quote

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168.	_________ is also known as price Quantity Quote.
A.	Forward Quote
B.	Indirect Quote
C.	Spot Quote
D.	Spread Quote
Answer» B. Indirect Quote

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169.	_____ is todays quote.
A.	Spot Quote
B.	Forward Quote
C.	Inter Bank Quote
D.	Mid Quote
Answer» A. Spot Quote

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170.	___________ is also known as Bid office spread.
A.	Direct Quote
B.	Mid Quote
C.	Spread Quote
D.	Cross Currency Quote
Answer» C. Spread Quote

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171.	___________ is also known as reference rate.
A.	Interbank Quote
B.	Cross Currency Quote
C.	Mid Quote
D.	Bid and Ask Quote
Answer» C. Mid Quote

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172.	Price of _________-- currency in terms of national currency.
A.	Home
B.	Foreign
C.	National
D.	Direct Rate
Answer» B. Foreign

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173.	US Dollar serves as a _________ Currency.
A.	Vehicle
B.	Foreign
C.	National
D.	Forex Market
Answer» A. Vehicle

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174.	Bid rate is lesser than _____________ rate.
A.	Inverse
B.	Ask
C.	Cross
D.	Foreign
Answer» B. Ask

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175.	If two banks are quoting the following GBP rates: Bank A: Rs.78.9810-79.1110 and Bank B: Rs.79.0110-19.2350. The arbitrage opportunity will be _________________
A.	100
B.	0
C.	124
D.	142
Answer» B. 0

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176.	If Quote of Bank ABC is EUR INR 68.00 /30 and Quote of Bank PQR is INR EUR 1.4550/1.4600, arbitrage opportunity will be ___________-
A.	2828
B.	0
C.	2882
D.	2288
Answer» A. 2828

discuss

177.	Effect of falling domestic exchange rate ___________
A.	Reduces Profitability for importers
B.	Increases Profitability for importers
C.	Exposure
D.	Economic
Answer» A. Reduces Profitability for importers

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178.	___________ refers to the size or scope of potential loss.
A.	Risk
B.	Uncertainty
C.	Exposure
D.	Tr
Answer» A. Risk

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179.	____________ risk is also called as “According Exposure”.
A.	Transaction
B.	Economic
C.	Translation
D.	Exposure
Answer» C. Translation

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180.	Internal techniques of managing forex risk includes all of the following, except _______________
A.	Leading and Lagging
B.	Matching
C.	Split Currency invoicing
D.	Forward and Future contracts
Answer» D. Forward and Future contracts

discuss

181.	When a company has receipts and payments in the same foreign currency due at the same time, it can use ___________technique of managing forex risk.
A.	Risk Sharing Agreement
B.	Lagging
C.	Leading
D.	Matching
Answer» D. Matching

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182.	_________ is a tax levied on passive income earned by an individua; or corporation of one country within the tax jurisdiction of another country.
A.	Income Tax
B.	Withholding Tax
C.	Value added tax
D.	Poll Tax
Answer» B. Withholding Tax

discuss

183.	____________ is also known as secrecy jurisdiction.
A.	Tax haven
B.	Transfer Pricing
C.	Foreign affiliate
D.	Tax
Answer» A. Tax haven

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184.	A strategy used to reduce tax liabilities by pricing goods and services within a group structure in way that it does not reflect the arm’s length transaction_______________.
A.	Thin Capitalization
B.	Repatriating Profits
C.	Transfer Pricing
D.	Tax haven
Answer» C. Transfer Pricing

discuss

185.	____________ is a Tax avoidance technique whereby multinational subsidiaries are financed primarily by debt from the parent company instead of equity capital.
A.	Thin Capitalization
B.	Repatriating Profits
C.	Transfer Pricing
D.	Tax haven
Answer» A. Thin Capitalization

discuss

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180+ International Finance Solved MCQs

Difference between except and import of goods and services______________.

Balance of Trade =Net earnings on exports ___________

Balance of Trade is a _________ concept.

BOP Stands for ___________

balance of payment = Current Account + balancing Item _____________

Balance of payment Identity equation ______________

Balance of payment is a statement that records all __________ transactions between a country and the rest of the world.

IIP is a subset of the national _____________

___________ was the first university implemented system for valuing currencies.

International Monetary fund which was given the task of implementing and monitoring the__________

BWS came into effect in July______________

EURO is single currency of the European Monetary Union adopted on _______________

__________ supports sustainable investments in the private sector in developing countries.

Foreign Investment are recorded in the _________ of balance of payments.

___________ is widely used by Government for formulating policies for economy.

Under gold standard system, countries gold reserves were required to be in custody of _________

________ is also known as price quotation.

_________ is also known as price Quantity Quote.

_____ is todays quote.

___________ is also known as Bid office spread.

___________ is also known as reference rate.

Price of _________-- currency in terms of national currency.

US Dollar serves as a _________ Currency.

Bid rate is lesser than _____________ rate.

If two banks are quoting the following GBP rates: Bank A: Rs.78.9810-79.1110 and Bank B: Rs.79.0110-19.2350. The arbitrage opportunity will be _________________

If Quote of Bank ABC is EUR INR 68.00 /30 and Quote of Bank PQR is INR EUR 1.4550/1.4600, arbitrage opportunity will be ___________-

Effect of falling domestic exchange rate ___________

___________ refers to the size or scope of potential loss.

____________ risk is also called as “According Exposure”.

Internal techniques of managing forex risk includes all of the following, except _______________

When a company has receipts and payments in the same foreign currency due at the same time, it can use ___________technique of managing forex risk.

_________ is a tax levied on passive income earned by an individua; or corporation of one country within the tax jurisdiction of another country.

____________ is also known as secrecy jurisdiction.

A strategy used to reduce tax liabilities by pricing goods and services within a group structure in way that it does not reflect the arm’s length transaction_______________.

____________ is a Tax avoidance technique whereby multinational subsidiaries are financed primarily by debt from the parent company instead of equity capital.