International Finance - 1

Multiple Choice Multiple Answer


Question
What are the categories of exposures, a person faces in International trade?


Correct Answer
Transaction exposure , Translation exposure


Your Answer
Transaction exposure , Exchange rate fluctuation , Political changes


Multiple Choice Multiple Answer


Question
The factors which affect the performance of an option are:-


Correct Answer
Underlying asset price , Time before expiration, rate of interest


Your Answer
Underlying asset price , Time before expiration, rate of interest


Select The Blank


Question
The option which can be exercised on the maturity date and not before it is known as________.


Correct Answer
European Option


Your Answer
European Option


Multiple Choice Single Answer


Question
What are the powers of restricted money changers?


Correct Answer
Purchase foreign currencies


Your Answer
Purchase and sell foreign currency notes and travellers cheques


Multiple Choice Multiple Answer


Question
Which contracts are used for transportation by road?


Correct Answer
FCA , CPT


Your Answer
FCA , CPT

 Multiple Choice Multiple Answer

  Question Â
The World Bank Group Consists of

  Correct Answer Â
International Development Association , International finance Corporation , Multinational Investment Guarantee Agency

 True/False

  Question Â
Naked position is when investor does not hedge against market risk.

  Correct Answer Â
True

  Your Answer Â
TRUE

 Multiple Choice Multiple Answer

  Question Â
In DAF, the frontier means :-

  Correct Answer Â
Frontier of exporter's country , Frontier of importer's country

 Multiple Choice Single Answer

  Question Â
Which type of Convertibility of Rupee launched in March 1992 ?

  Correct Answer Â
Limited convertibility

  Your Answer Â
Convertibility on current account

 Multiple Choice Single Answer

  Question Â
What was the reason for launching swap as an risk hedging instrument?

  Correct Answer Â
To avoid the effects of currency control imposed in UK

  Your Answer Â
To avoid the effects of currency control imposed in UK

 Multiple Choice Single Answer

  Question Â
Equity can be raised internationallly by a company through :-

  Correct Answer Â
Fund raising, underwriting, hedging , arbitration operations

  Your Answer Â
Floating debt instruments

 True/False

  Question Â
In forward sales, the delivery refers to actual cash flows on due date.

  Correct Answer Â
True

 Select The Blank

  Question Â
Any company involved in foreign exchange transactions is exposed to ________ risk.

  Correct Answer Â
Currency

  Your Answer Â
Payment


Â

 True/False

  Question Â
An AD can book a forward contract for a part of the amount of Sale Contract

  Correct Answer Â
True

 Multiple Choice Single Answer

  Question Â
Why does a person need protection from unfavourable movement of exchange rate?

  Correct Answer Â
Unfavourable fluctuations in exchange rate can wipe out the normal business profit

  Your Answer Â
He wants to make profit

 Match The Following

Question
Correct Answer
Your Answer

Merchant banking
Portfolio management
Portfolio management

Securitization
Issue of debt in the form of tradeable security
Issue of debt in the form of tradeable security

Prime borrower
Highest credit rating
Highest credit rating

Traditional banking service
Loans and cash credit against security
Loans and cash credit against security

 Multiple Choice Multiple Answer

  Question Â
What are the activities of ICC?

  Correct Answer Â
Aribtration and dispute resolving , Canvass for open trade combat commercial crime

  Your Answer Â
Aribtration and dispute resolving , Canvass for open trade combat commercial crime

 Multiple Choice Multiple Answer

  Question Â
Which factors influence the valuation of cash flows?

  Correct Answer Â
Incomplete capital market , Availability of projkect specific concessional finance,

  Your Answer Â
Incomplete capital market , Rates of inflation, , volatility of exchange rates

 Multiple Choice Multiple Answer

  Question Â
What is the objective of FEDAI?

  Correct Answer Â
Laying down terms and conditions of exchange business between Customers and Bankers , Interbank understanding for transacting forex business and exchange rates

  Your Answer Â
Laying down terms and conditions of exchange business between Customers and Bankers , Growth of Indian Exports , Ensure the profitability of Forex business to the banks

Â>Select The Blank


  Question Â
Forward margin makes a currency cheaper then the currency is at ________.
  Correct Answer Â
Discount
  Your Answer Â
PAR

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 Match The Following

Question
Correct Answer
Your Answer

Intolerable risk
Drop the investment project
Cost of evluation does not justify analysis

Country risk analysis
Cost of evluation does not justify analysis
Continue the project

Stock market analysis
Banks are ahead
Banks are ahead

Weightages %
Factors' values
Factors' values

 Multiple Choice Single Answer

  Question Â
A bill of exchange issued by a bank which pays specified sum of money to the holder on a specific date is called :-

  Correct Answer Â
Bankers' Acceptance Bond

  Your Answer Â
Usance Bill of Exchange

 Multiple Choice Single Answer

  Question Â
In the syndicated loan arrangement the borrower has to execute :-

  Correct Answer Â
Single Principal loan agreement

  Your Answer Â
Single Principal loan agreement

 Select The Blank

  Question Â
Rupee was liberalised on ________ account in 1993, and on current account in 1994.

  Correct Answer Â
Trade

  Your Answer Â
Capital

 Select The Blank

  Question Â
Indian Co. intending to make investment under Automatic route needs to submit form ________ to RBI with enclosures.

  Correct Answer Â
ODA

  Your Answer Â
ODA

 Multiple Choice Multiple Answer

  Question Â
A Forward purchase contract was booked with an authorised dealer and subsequently cancelled .It :-

  Correct Answer Â
Can be booked again with another dealer , Can be booked again with the same dealer

  Your Answer Â
Can be booked again with another dealer , Can be booked again with the same dealer , Can be booked only for un booked portion of the contract.


Select The Blank


Question
The ________is a Floating rate index for swaps.


Correct Answer
US Commercial paper rate


Your Answer
US Commercial paper rate