Notesale: Turn your study into money

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Question 1

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A nation will a current account deficit will be ?
Select one:
a
...
Lending more money to other nations
c
...
Experiencing a surplus in exports of goods an services

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The correct answer is: Going further into debt with other nations
Question 2

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When there is a favorable balance of trade?
Select one:
a
...
X + M
c
...
X < M
e
...
00 out of 1
...
Capital flows
b
...
Services flows
d
...
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For the first time since World War I, in the mid-1980s the United States became a net international ?
Select one:
a
...
Creditor
c
...
Exporter

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The correct answer is: Debtor
Question 5

Not answered

Marked out of 1
...
None of the above
b
...
Export of both Visible and Invisible Items – Import of both Visible and Invisible Items
d
...
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Broad measure of a country's international trade in goods and services are called:
Select one:
a
...
Trade account
c
...
Capital account

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The correct answer is: Current account
Question 7

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A credit item in the capital account
b
...
A debit item in the current account
d
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Which one is the king of the exchange rate?
Select one:
a
...
Both Fixed Exchange Rate and Flexible Exchange Rate
c
...
None of these

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The correct answer is: Both Fixed Exchange Rate and Flexible Exchange Rate
Question 9

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Central government of the country
b
...
Commercial bank of the country
d
...
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Interest Rate Parity (IRP) implies that…………
Select one:
a
...
The interest rates between two countries start in equilibrium, any change in the differential rate of inflation
between the two countries tends to be offset over the long- term by an equal but opposite change in the spot
exchange rate
c
...
Interest rates should change by an equal amount but in the opposite direction to the difference in inflation
rates between two countries

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The correct answer is: The difference in interest rates in different currencies for securities of similar risk and
maturity should be consistent with the forward rate discount or premium for the foreign currency

Question 1

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Marked out of 1
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Reflects statistical discrepancies
b
...
Reflects the difference between flow and stock concepts
d
...
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All of the following are credit items in the balance of payments except ?
Select one:
a
...
Investment inflows
c
...
Merchandise exports

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The correct answer is: Private gives to foreign residents
Question 3

Not answered

Marked out of 1
...
Paper currency
b
...
SDR
d
...
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The record of a country’s transactions in goods, services and assets with the rest of the world is its ?
Select one:
a
...
Current account
c
...
Capital account

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The correct answer is: Balance of payments
Question 5

Not answered
Marked out of 1
...
Insure that the sum of all debits matches the sum of all credits
b
...
Obtain an accurate account of a balance of payments surplus
d
...
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……………
...

Select one:
a
...
Foreign exchange
c
...
Foreign trade

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The correct answer is: Foreign trade
Question 7

Not answered
Marked out of 1
...
fixed exchanges rate system
b
...
Floating Exchange rate
d
...
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What is full form of Forex?
Select one:
a
...
Foreign Experts
c
...
Foreign Exemption

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The correct answer is: Foreign Exchange
Question 9

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Marked out of 1
...
foreign exchange transaction
b
...
Eurodollar transaction
d
...
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Economic exposure does not deal withSelect one:
a
...
future cash flows of the firm
c
...
none of the above

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The correct answer is: expected exchange rate changes
Question 1

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In the balance of payments travels and tourism are included in the category of ?
Select one:
a
...
Merchandise account
c
...
Services account

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The correct answer is: Services account
Question 2

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The difference between the balance on current account and the balance on capital account is the ?
Select one:
a
...
Balance of trade
c
...
Trade deficit

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The correct answer is: Statistical discrepancy
Question 3

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Direct investment and security purchases are classified as ?
Select one:
a
...
Current account transactions
c
...
Merchandise trade transactions

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The correct answer is: Capital account transactions
Question 4

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When the import and export of visible items are equal, the situation is known as _______
Select one:
a
...
Trade Surplus
c
...
Balance of Payment

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The correct answer is: Balance of Trade
Question 5

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When a country has a trade deficit it ?
Select one:
a
...
Sells more goods to the rest of the world than it purchases
c
...
Purchases more goods from the rest of the world than it sells

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The correct answer is: Purchases more goods from the rest of the world than it sells
Question 6

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Debit entries on the balance of payments are the entries that would ?
Select one:
a
...
Exist at the bottom line after all accounts are totaled
c
...
Bring foreign exchange into the country

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The correct answer is: Mean a loss of foreign exchange
Question 7

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The balance of payments is divided into two major accounts the ?
Select one:
a
...
Current account the capital account
c
...
Trade account the capital account

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The correct answer is: Current account the capital account
Question 8

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All of the following are debit items in the balance of payments except ?
Select one:
a
...
Capital outflows
c
...
Private gifts to foreigners

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The correct answer is: Merchandise exports
Question 9

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Account reflecting changes in country ownership of long- term and short-term financial assets are called:
Select one:
a
...
Current account
c
...
Capital account

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The correct answer is: Capital account
Question 10

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……………
...

Select one:
a
...
Financial service
c
...
Head Offices

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The correct answer is: Financial Market
Question 1

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What does CAPM stands for
...
Capital asset printing model
b
...
Capital amount pricing model
d
...
00 out of 1
...
An over the counter unorganized market
b
...
Unorganized listed market
d
...
00 out of 1
...
Bonds
b
...
machines and stocks
d
...
00 out of 1
...
Unemployment
b
...
Money circulation
d
...
00 out of 1
...
Earning capital assets of the company
b
...
Proper utilisation of funds
d
...
00 out of 1
...
Inventory, marketable securities, cash, accounts receivable
b
...
Accounts receivable, inventory, marketable securities, cash
d
...
00 out of 1
...
Exchange rates of currencies
b
...
Credit rating
d
...
00 out of 1
...
Fixed system
b
...
Managed float
d
...
00 out of 1
...
Depreciate
b
...
Appreciate
d
...
00 out of 1
...
Transaction exposure
b
...
Translation exposure
d
...
00 out of 1
...
Organization of funds
b
...
All features of obtaining and using financial resources for company operations
d
...
00 out of 1
...
The sensibility of eps with % change in the ebit level
b
...
% variation in the level of production
d
...
00 out of 1
...
Exports
b
...
Donations
d
...
00 out of 1
...

Select one:
a
...
Two or more countries
c
...
Two factor system

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The correct answer is: Two or more countries
Question 5

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What is "Arbitrageurs" in Foreign exchange markets
Select one:
a
...
Make their profits through the spread between bid and offer rates of exchange
c
...
Attempt to make profits by outguessing the market

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The correct answer is: Take advantage of the small inconsistencies that develop between markets
Question 6

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Geographical diversification
b
...
Futures market hedging
d
...
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How is Profitability ratios measured?
Select one:
a
...
The speed at which the firm is turning over its assets
c
...
The debt position of the firm in light of its assets and earning power

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The correct answer is: The ability of the firm to earn an adequate return on sales, total assets, and invested
capital
Question 8

Not answered
Marked out of 1
...
Accounting and comparative return analysis
b
...
Statistics and risk analysis
d
...
00

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Why is market value share important
Select one:
a
...
Shareholders
c
...
The government

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The correct answer is: The investment market
Question 10

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Marked out of 1
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Tangible good
b
...
Human resources
d
...
00

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_____ is not a characteristic of speculation
...
Hedging
b
...
Risk taking
d
...
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Why is Amortization considered source of funds in organisation
Select one:
a
...
Amortization is not a source of funds
c
...
It is purely an accounting entry and doesn't involve a direct disbursement of funds, freeing up these funds
for other investments

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The correct answer is: It is purely an accounting entry and doesn't involve a direct disbursement of funds,
freeing up these funds for other investments
Question 3

Not answered
Marked out of 1
...
Interest rate arbitrage
b
...
The actions of market-makers
d
...
00

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What is Financial management process
Select one:
a
...
None of these
c
...
Capital decisions

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The correct answer is: Financing decisions
Question 5

Not answered
Marked out of 1
...
Difference between total exports and total imports within a country
b
...
Ratio of import prices to export prices for a particular country
d
...
00

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When should we hold Purchasing Power Parity
Select one:
a
...
Always
c
...
Under a fixed exchange rate regime

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The correct answer is: Under a flexible exchange rate regime
Question 7

Not answered
Marked out of 1
...
Taxation
b
...
Transactions risk exposure
d
...
00 out of 1
...
bid rate
b
...
offer rate
d
...
00 out of 1
...
Fixed assets
b
...
Long terms assets
d
...
00 out of 1
...
Business risk
b
...
Operating exposure
d
...
00 out of 1
...
merchant
b
...
spot
d
...
00 out of 1
...
RBI
b
...
FEDAI
d
...
00 out of 1
...
Bill selling rate
b
...
TT buying Rate
d
...
00 out of 1
...
interbank ready buying rate
b
...
interbank spot selling rate
d
...
00 out of 1
...
buy low; sell high
b
...
buy low only
d
...
Telephone Transfer
b
...
Telex Transfer
d
...
shifting production to a low-cost centre
b
...
reviving uneconomic units
d
...
sell high only
b
...
buy low only
d
...

Select one:
a
...
Tangible good
c
...
Intangible good

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The correct answer is: Short term
Question 10

All are methods of Internally managing foreign exchange risk except,______________
...
Forward Contract
b
...
Exposure Netting
d
...
00 out of 1
...
Finance ministry of India
b
...
FEDAI
d
...
00 out of 1
...
European quotation
b
...
home currency quotation
d
...
00 out of 1
...
offer rate
b
...
swap
d
...
00 out of 1
...
shifting to a market whose currency has appreciated
b
...
preferring domestic market to foreign market
d
...
00 out of 1
...
remains extremely stable over long periods of time
b
...
is determined by the actions of central banks
d
...
00 out of 1
...
TT buying Rate
b
...
Bill selling rate
d
...
00 out of 1
...
denominating in a third currency
b
...
denominating partly in the importer’s currency and partly in the exporter’s currency
...
denominating in domestic currency

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The correct answer is: denominating in domestic currency
Question 8

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Foreign income received in India during the previous year is taxable in the case of ________
Select one:
a
...
Black money
c
...
Demonetization

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The correct answer is: Non resident
Question 9

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In India exchange rates for foreign currencies other than US dollar are calculated as
Select one:

a
...
Cross rates
c
...
TT selling rate

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The correct answer is: Cross rates
Question 10

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An export bill is taken for collection by the bank
...
TT buying rate as on the date of sending the bill for collection
b
...
bill buying rate
d
...
00

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When did government remove the barrier for investment in India?
Select one:
a
...
1995
c
...
1993

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The correct answer is: 1991
Question 2

Not answered
Marked out of 1
...

Select one:
a
...
Rupees
c
...
Euros

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The correct answer is: Rupees
Question 3

Not answered
Marked out of 1
...
Economic Risk
b
...
Natural Risk
d
...
00

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Which Indian industries have been hit by globalization?
Select one:
a
...
Information technology
c
...
Jute

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The correct answer is: Toy making
Question 5

Not answered
Marked out of 1
...
Ministry of commerce
b
...
FEDAI
d
...
00

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The bills selling rate is calculated by adding exchange margin to the
Select one:
a
...
TT buying rate
c
...
Bills selling rate

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The correct answer is: TT selling rate
Question 7

Not answered
Marked out of 1
...
Tax evasion
b
...
Money laundering
d
...
00

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A floating exchange rate
Select one:
a
...
is determined by the national governments involved
c
...
remains extremely stable over long periods of time

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The correct answer is: is allowed to vary according to market forces)
Question 9

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Who regulates the foreign trade in India?
Select one:
a
...
SEBI
c
...
DGFT

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The correct answer is: SEBI
Question 10

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Foreign income received in India during the previous year is taxable in the case of ________
Select one:
a
...
Black money
c
...
Demonetization

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The correct answer is: Non resident
Question 1

Not answered
Marked out of 1
...
dirty floating
b
...
Floating exchanges rates
d
...
00

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_______ market deals with current sales and purchases of foreign exchange
...
Foreign exchange market
b
...
Shop
d
...
00

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What is the primary function of large, diversified brokerage firms in the money market?
Select one:
a
...
To buy money market securities from corporations that need liquidity
c
...
To buy T-bills from the U
...
treasury department

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The correct answer is: To make a market for money market securities by maintaining an inventory from which
to buy or sell
Question 4

Not answered
Marked out of 1
...
depreciation
b
...
Appreciated
d
...
00

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The current system of international finance is a
Select one:
a
...
fixed exchange rate system
c
...
managed float exchange rate system

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The correct answer is: managed float exchange rate system
Question 6

Not answered
Marked out of 1
...
Vault cast of the Federal government
b
...
Commercial bank deposits at the Federal Reserve
d
...
00

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The transaction where the exchange of currencies takes place on the same date is known as
Select one:
a
...
ready transaction
c
...
value tomorrow

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The correct answer is: ready transaction
Question 8

Not answered
Marked out of 1
...
Assumes all of the interest rate risk
b
...
Shares the interest rate risk with the lender
d
...
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Under the current rate method, when management anticipates appreciation of a foreign currency, it may use
one of the following techniques to enhance its position
...
May try to increase net exposed assets in that country
b
...
May try to decrease net exposed assets in that country
d
...
00

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The net potential gain or loss likely to arise from exchange rate changes isSelect one:
a
...
exchange risk
c
...
profit/loss on foreign exchange

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The correct answer is: exchange risk
Question 1

Not answered
Marked out of 1
...
a special type of forward contract
b
...
traded on futures exchanges
d
...
00

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Which of the following statements always describes the relationship between current yield and yield to
maturity?
Select one:
a
...
The current yield is higher
c
...
The yield to maturity should be used in comparing bonds which are to be held to maturity; the current yield
for comparing bonds which are to be sold before maturity

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The correct answer is: The yield to maturity should be used in comparing bonds which are to be held to
maturity; the current yield for comparing bonds which are to be sold before maturity
Question 3

Not answered
Marked out of 1
...
quoting a price for a foreign currency transaction
b
...
entry in the books of accounts
d
...
00

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What problem does the financial intermediaries face, if bad credit risks are those that most actively seek and
receive loans from financial intermediaries?
Select one:
a
...
Moral hazard
c
...
Costly state verification

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The correct answer is: Adverse selection
Question 5

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Depreciation of domestic currency leads rise in
Select one:
a
...
Imports
c
...
Export and Import

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The correct answer is: Exports
Question 6

Not answered
Marked out of 1
...
its TT buying rate
b
...
interbank spot buying rate
d
...
00

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the transaction where the exchange of currencies takes place two days after the date of the contract is known as
Select one:
a
...
value today
c
...
value tomorrow

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The correct answer is: spot transactions
Question 8

Not answered
Marked out of 1
...
exchange intervention
b
...
exchange reserves
d
...
00

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The foreign exchange rate is determined by:
Select one:
a
...
Bargaining
c
...
Demand and Supply forces

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The correct answer is: Demand and Supply forces
Question 10

Not answered
Marked out of 1
...
Crawling Peg
b
...
Managed to float
d
...
00

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The term risk in business refers toSelect one:
a
...
threat from competitors
c
...
uncertainty associated with expected event leading to losses or gains

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The correct answer is: uncertainty associated with expected event leading to losses or gains
Question 2

Not answered
Marked out of 1
...
To prevent the effects of one country's inflationary policies from spreading to other countries
b
...
To prevent exchange rates from changing
d
...
00 out of 1
...
ready transaction
b
...
Value tomorrow
d
...
00 out of 1
...
home currency quotation
b
...
currency quotation
d
...
00

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Ideal time for launching a product in a foreign market is
Select one:
a
...
when host currency has appreciated
c
...
when exchange rate in the markets are fluctuating violently

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The correct answer is: when domestic currency has depreciated
Question 6

Not answered
Marked out of 1
...
Bill buying rate
b
...
TT selling rate
d
...
00

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Which of the following option is right for the statement? All financial intermediary institutions in the
intermediation market
...
Buy from brokers and dealers and sell to the public
b
...
Buy primary securities and sell secondary securities
d
...
00 out of 1
...
forwards
b
...
Spot
d
...
00 out of 1
...
fiscal policy
b
...
both fiscal and monetary policy
d
...
00 out of 1
...
Foreign Currency is variable
b
...
Foreign currency is static
d
...
00

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Question text
The money market where debt and stock are traded and maturity period is more than a year is classified as…
...
Money market
b
...
Long term markets
d
...
00

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DFI stands for:
Select one:
a
...
Direct Foreign Interior
c
...
Deemed Foreign Investment

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The correct answer is: Direct Foreign Investment
Question 3

Not answered
Marked out of 1
...
Basic goods
b
...
Visible goods
d
...
00

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UTI, LIC etc
...
Investment institution
b
...
Banking institution
d
...
in this case underwriter agrees to take up a specified number of securities
...
Syndicate underwriting
b
...
Firm underwriting
d
...
Bearer bonds
b
...
Transfer funds
d
...
Venture capital
b
...
Insurance
d
...
00 out of 1
...

Select one:
a
...
Registered companies
c
...
Registrar of capital

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The correct answer is: Registrar of companies
Question 9

Incorrect

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SDR is an international reserve asset created by
Select one:
a
...
WTO
c
...
IMF

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The correct answer is: IMF
Question 10

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‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a written consent or authorization representing or acting on behalf of an individual in matters
of business, private affairs or other legal matters
...
ROC
b
...
Memorandum of understanding

d
...
00 out of 1
...

Select one:
a
...
Long term markets
c
...
Swap contract

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The correct answer is: Swap contract
Question 2

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The number of lead merchant bankers may not exceeds in case any issue of , issue size less than
Rs
...

Select one:
a
...
4
c
...
8

Feedback
The correct answer is: 2
Question 3

CCIL stands for __________
Select one:
a
...
The clearing corporation of India
c
...
Market forces of demand and supply

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The correct answer is: The clearing corporation of India
Question

The key to international diversification is the selection of those foreign markets and opportunities where
performance levels are ______________
...
not correlated over time
b
...
equal over time
d
...
1972
b
...
1969
d
...

Select one:

a
...
Financial activity
c
...
Commercial activity

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The correct answer is: Commercial activity
Question 7

SFC is an example of
Select one:
a
...
Banking institution
c
...
Development Institution

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The correct answer is: Development Institution
Question 8

The methodical analysis of the decision criteria and application of regulations that facilitate the managers to
arrive to responsible decisions is referred to as ________________
...
Direct Foreign Investment criteria
b
...
Capital Budgeting
d
...
FDI
b
...
Merchandise balance

d
...
Financial institutions
b
...
Non-financial institutions
d
...
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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
...
Risk sharing agreement
b
...
Leading
d
...
00

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________analyses if the benefits will justify the project cost/investment done
...
Technical analysis
b
...
Economic analysis
d
...
00

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In primary markets, the first time issued shares to be publicly traded, in stock markets is considered as
Select one:
a
...
Traded offering
c
...
Initial public offering

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The correct answer is: Initial public offering
Question 4

Not answered
Marked out of 1
...
Current account
b
...
Reserve account
d
...
00 out of 1
...

Select one:
a
...
5
c
...
3

Feedback
The correct answer is: 5
Question 6

Not answered
Marked out of 1
...
Factor allocation
b
...
Business allocation
d
...
00 out of 1
...
USA
b
...
India
d
...
00

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_________ frames rules and guidelines for Forex Business in India
Select one:
a
...
FEDIA
c
...
RBI

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The correct answer is: FEDIA
Question 9

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IFRS
b
...
BOP
d
...
00

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If the risk of the project is greater than the risk associated with the existing investment of the company,
discount rate used is _________ than the average cost of capital of the company
Select one:
a
...
higher
c
...
cannot be ascertained
The correct answer is: higher

Question 1

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A current account surplus implies that ?
Select one:
a
...
The value of merchandise exports minus imports
c
...
The country is a net lender to the rest of the world

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The correct answer is: The country is a net lender to the rest of the world
Question 2

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Credit items in the balance of payments correspond to anything that ?
Select one:
a
...
Decreases the demand for foreign exchange
c
...
Increases the domestic money supply

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The correct answer is: Involves receipts from foreigners

Question 3

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The rate which is determine by the government is known as
Select one:
a
...
Fixed
c
...
fixed exchanges rate system

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The correct answer is: Fixed
Question 4

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Economic exposure does not deal withSelect one:
a
...
changes in real exchange rates
c
...
future cash flows of the firm

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The correct answer is: expected exchange rate changes

Question 5

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Broad measure of a country's international trade in goods and services are called:
Select one:
a
...
Capital account
c
...
Receivable account

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The correct answer is: Current account
Question 6

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The difference between the balance on current account and the balance on capital account is the ?
Select one:
a
...
Trade deficit
c
...
Balance of payments

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The correct answer is: Statistical discrepancy

Question 7

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The main objective of international financial Management is to arrange sufficient funds for meeting
the _____________ goals of an organization
...
Short term
b
...
Decreased
d
...
00 out of 1
...
Capital outflows
b
...
Private gifts to foreigners
d
...
00 out of 1
...
normal risk
b
...
currency risk
d
...
00 out of 1
...
It is difficult to know whether the news has been obtained legally
b
...
It is difficult to know which news is relevant to future exchange rates
d
...
00 out of 1
...
Show no specific tendency
b
...
Appreciate
d
...
00 out of 1
...
Destination
b
...
Development
d
...
00 out of 1
...
RBI
b
...
Ministry of commerce
d
...
00 out of 1
...

Select one:
a
...
Rupees
c
...
Euros

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The correct answer is: Rupees
Question 15

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__________ is not a type of foreign exchange risk
Select one:
a
...
Transaction risk
c
...
Economic Risk

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The correct answer is: Natural Risk
Question 16

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TT selling rate is calculated on the basis of ——selling rate
Select one:
a
...
security

c
...
merchant

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The correct answer is: interbank
Question 17

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Which of the following option complete the sentence? In most variable-rate mortgages, the
homebuyer:
Select one:
a
...
Does not repay the principal until maturity
c
...
Shares the interest rate risk with the lender

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The correct answer is: Shares the interest rate risk with the lender
Question 18

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Exchange control as a method of correcting balance of payments disequilibrium does not include
Select one:
a
...
exchange reserves
c
...
exchange restriction

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The correct answer is: exchange reserves
Question 19

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A firm operating in India cannot hedge its foreign currency exposure through
Select one:
a
...
forwards
c
...
futures

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The correct answer is: futures
Question 20

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Translation loss may occur whenSelect one:

a
...
exposed assets exceed exposed liabilities and foreign currency depreciates
c
...
the foreign currency depreciates

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The correct answer is: exposed assets exceed exposed liabilities and foreign currency depreciates
Question 21

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Ideal time for launching a product in a foreign market is
Select one:
a
...
when exchange rate in the markets are fluctuating violently
c
...
when domestic currency has appreciated

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The correct answer is: when domestic currency has depreciated
Question 22

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A transaction in which the currencies to be exchanged the next day of the transaction is known as

Select one:
a
...
ready transaction
c
...
spot transactions

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The correct answer is: Value tomorrow
Question 23

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The world’s major trading currencies, which are free to float against each other, include all of the
following except
Select one:
a
...
Japanese yen
c
...
British pound

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The correct answer is: Spanish peso
Question 24

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The additional debt instrument or equity instruments of publically traded firm are included in the
markets classified as –
Select one:
a
...
Secondary markets
c
...
Primary market

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The correct answer is: Primary market
Question 25

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In quote of 1 USD = INR 60, is a home country
Select one:
a
...
India
c
...
USA

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The correct answer is: India
Question 26

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________analyses if the benefits will justify the project cost/investment done
...
Economic analysis
b
...
Technical analysis
d
...
00 out of 1
...
IRR
b
...
NPV
d
...
00 out of 1
...
Fund based activity
b
...
Fee based activity
d
...
00 out of 1
...
in this case underwriter agrees to take up a specified number of securities
...
Joint underwriting
b
...
Sub underwriting
d
...
00 out of 1
...

Select one:
a
...
Registrar of companies
c
...
Registered companies

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The correct answer is: Registrar of companies
Question 1

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Foreign exchange is determined by:
Select one:
a
...
Demand and supply in the foreign exchange market
c
...
None of the above

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The correct answer is: Demand and supply in the foreign exchange market
Question 2

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Question text
When there is unfavorable balance of trade?
Select one:
a
...
X - M
c
...
M
e
...
00 out of 1
...
Sells more goods to the rest of the world than it purchases
b
...
Purchases more goods from the rest of the world than it sells
d
...
00 out of 1
...
1999
b
...
1997
d
...
00 out of 1
...
SEBI
b
...
RBI
d
...
00 out of 1
...
is the act of trading different currencies
...
Foreign exchange
b
...
Arbitrage
d
...
00 out of 1
...
Shop
b
...
Foreign exchange market
d
...
00 out of 1
...
Gifts
b
...
Donations
d
...
00 out of 1
...
Tax exposure
b
...
Translation exposure
d
...
00 out of 1
...
Donations
b
...
Exports
d
...
00 out of 1
...
appreciation
b
...
depreciation
d
...
00 out of 1
...
Demand
b
...
Employment
d
...
00 out of 1
...
shifting to a market whose currency has depreciated
b
...
preferring domestic market to foreign market
d
...
00 out of 1
...
TT buying Rate
b
...
Bill buying rate
d
...
00 out of 1
...
American quotation
b
...
home currency quotation
d
...
00 out of 1
...
Demonetization
b
...
Money laundering
d
...
00 out of 1
...
Vault cast of the Federal government
b
...
Commercial bank deposits at the Federal Reserve
d
...
00 out of 1
...
dirty floating
b
...
Pegged exchange rate system
d
...
00 out of 1
...
Which?
Select one:
a
...
May try to increase net exposed assets in that country
c
...
May move funds from cash into inventories

Feedback
The correct answer is: May try to increase net exposed assets in that country
Question 20

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The rate applied when the Nostro account of the bank would already have been credited
Select one:
a
...
TT buying Rate
c
...
TT selling rate

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The correct answer is: TT buying Rate
Question 21

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The current system of international finance is a
Select one:
a
...
floating exchange rate system
c
...
gold standard

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The correct answer is: managed float exchange rate system
Question 22

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In Spot market, exchange of currencies take place on basis
...
T + 3
b
...
T + 2
d
...
00 out of 1
...
Debentures
b
...
Shares
d
...
00 out of 1
...
Home transfer
b
...
Direct transfer
d
...
00 out of 1
...
Commercial mortgages

b
...
Convertible securities
d
...
00 out of 1
...
Financial lease
b
...
Vendor
d
...
00 out of 1
...
Banking institution
b
...
Development Institution
d
...
00 out of 1
...
Accepted
b
...
Discarded
d
...
00 out of 1
...
are examples of

Select one:
a
...
Banking institution
c
...
NBFI

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The correct answer is: Investment institution
Question 30

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The methodical analysis of the decision criteria and application of regulations that facilitate the
managers to arrive to responsible decisions is referred to as ________________
...
Direct Foreign Investment criteria
b
...
Cost of capital
d
...
00 out of 1
...
The sum of merchandise trade and services
b
...
The current account plus long-term capital
d
...
00 out of 1
...
Experiencing a surplus in exports of goods an services
b
...
Going further into debt with other nations
d
...
00 out of 1
...
Unilateral transfer transactions
b
...
Current account transactions
d
...
00 out of 1
...
Swiss
b
...
Japan
d
...
00 out of 1
...
Exist at the bottom line after all accounts are totaled
b
...
Indicate a surplus exist
d
...
00 out of 1
...
None of these
b
...
Fixed Exchange Rate
d
...
00 out of 1
...
Balance of international indebtedness
b
...
Balance of payments
d
...
00 out of 1
...
Balance of Trade
b
...
Deficit Balance
d
...
00 out of 1
...
Money market hedges
b
...
Forward contract hedges
d
...
00 out of 1
...

Select one:
a
...
Two or more countries
c
...
Growth fund

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The correct answer is: Two or more countries
Question 11

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Question text
How is Profitability ratios measured?
Select one:
a
...
The debt position of the firm in light of its assets and earning power
c
...
The speed at which the firm is turning over its assets

Feedback
The correct answer is: The ability of the firm to earn an adequate return on sales, total assets, and
invested capital
Question 12

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What is finance manager accountable for
Select one:
a
...
Earning capital assets of the company
c
...
Arrangement of financial resources

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The correct answer is: Arrangement of financial resources
Question 13

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An export bill is taken for collection by the bank
...
TT buying rate as on the date of sending the bill for collection
b
...
bill buying rate
d
...
00 out of 1
...
Bill buying rate
b
...
Bill selling rate
d
...
00 out of 1
...
Cement
b
...
Information technology
d
...
00 out of 1
...
interbank spot selling rate
b
...
interbank ready selling rate
d
...
00 out of 1
...
To prevent misallocation of economic resources
b
...
To eliminate the economic fluctuations that result from short-run, self-reversing forces
d
...
00 out of 1
...

Select one:
a
...
Be repaid over the life of the loan
c
...
Charge lower interest rate ,

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The correct answer is: Be repaid over the life of the loan
Question 19

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A change from Rest 60 = 1 Dollar to Rest 62 = 1 Dollar indicates that Rs has
Select one:
a
...
Appreciated
c
...
depreciation

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The correct answer is: depreciation
Question 20

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In case of direct quotation of rate, which is true:
Select one:
a
...
Indian currency is static
c
...
Indian currency is variable

Feedback

The correct answer is: Foreign currency is static
Question 21

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Which of the following option complete the statement? If a bank has more rate-sensitive assets than
rate-sensitive liabilities, then an increase in interest rates results in what bank profits
...
Increase
b
...
Not Affect
d
...
00 out of 1
...
monetary policy
b
...
exchange rate policy
d
...
00 out of 1
...

Select one:
a
...
Power of authority
c
...
Memorandum of understanding

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The correct answer is: Power of authority
Question 24

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The number of lead merchant bankers may not exceed in case any issue of, issue size 200crore to
400crore
...
5
b
...
3
d
...
00 out of 1
...

Select one:
a
...
Financial lease
c
...
Operating lease

Feedback
The correct answer is: Sale and lease back
Question 26

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Which of the following is /are not regulatory institutions
Select one:
a
...
RBI
c
...
IFCI

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The correct answer is: IRDA
Question 27

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In primary markets, the first time issued shares to be publicly traded, in stock markets is considered
as
Select one:
a
...
Public markets
c
...
Issuance offering

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The correct answer is: Initial public offering
Question 28

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Which of the following is not a negotiable instrument?
Select one:

a
...
GDR
c
...
FDR

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The correct answer is: FDR
Question 29

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Which of the following is NOT a restriction to international trade?
Select one:
a
...
Subsidies
c
...
Exchange Controls

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The correct answer is: GATT
Question 30

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All type of activities which are of a financial nature are called‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
...
Financial market
b
...
Financial services
d
...
00 out of 1
...
None of the above
b
...
Export of Visible Items – Imports of Visible Items
d
...
00 out of 1
...
M
b
...
X + M
d
...
X < M

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The correct answers are: X > M, M
Question 3

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……………
...

Select one:
a
...
Financial Market
c
...
Financial service

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The correct answer is: Financial Market
Question 4

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In balance of payments accounting tourism and travel are classified in the ?
Select one:
a
...
Unilateral transfers account
c
...
Capital account

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The correct answer is: Services account
Question 5

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What is full form of Forex?
Select one:
a
...
Foreign Expansion
c
...
Foreign Exemption

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The correct answer is: Foreign Exchange
Question 6

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In the balance of payments travels and tourism are included in the category of ?
Select one:
a
...
Services account
c
...
Merchandise account

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The correct answer is: Services account
Question 7

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Current account deficit are offset by______________?
Select one:
a
...
Merchandise trade surpluses
c
...
Capital/financial account surpluses

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The correct answer is: Capital/financial account surpluses
Question 8

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Account reflecting changes in country ownership of long- term and short-term financial assets are
called:
Select one:
a
...
Current account
c
...
Trade account

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The correct answer is: Capital account
Question 9

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The three disputes of FDI are over _______
Select one:
a
...
Regard
c
...
Hobby

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The correct answer is: Interest
Question 10

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Question text
Which field is closely related to Finance
Select one:
a
...
Statistics and economics
c
...
Accounting and comparative return analysis

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The correct answer is: Economics and accounting
Question 11

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What is Financial management process
Select one:
a
...
None of these
c
...
Financing decisions

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The correct answer is: Financing decisions
Question 12

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Question text
What does CAPM stands for
...
Capital amount printing model
b
...
Capital amount pricing model
d
...
00 out of 1
...

Select one:
a
...
Exposure Netting
c
...
Leading & lagging

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The correct answer is: Forward Contract
Question 14

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Question text
The bills selling rate is calculated by adding exchange margin to the
Select one:
a
...
Bills buying rate
c
...
Bills selling rate

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The correct answer is: TT selling rate
Question 15

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In India exchange rates for foreign currencies other than US dollar are calculated as
Select one:
a
...
Cross rates
c
...
TT buying rate

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The correct answer is: Cross rates
Question 16

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Question text
TT stands for
Select one:
a
...
Telex Transfer
c
...
Telegraphic Transfer

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The correct answer is: Telegraphic Transfer
Question 17

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What problem does the financial intermediaries face, if bad credit risks are those that most actively
seek and receive loans from financial intermediaries?
Select one:
a
...
Moral hazard
c
...
Free-riding

Feedback
The correct answer is: Adverse selection
Question 18

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What is the primary function of large, diversified brokerage firms in the money market?
Select one:
a
...
S
...
To buy money market securities from corporations that need liquidity
c
...
To sell money market securities to the Federal Reserve for its open market operations

Feedback
The correct answer is: To make a market for money market securities by maintaining an inventory
from which to buy or sell
Question 19

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Question text
Which of the following option is right for the statement? All financial intermediary institutions in the
intermediation market
...
Borrow short and lend long
b
...
Buy from brokers and dealers and sell to the public
d
...
00 out of 1
...
spot transactions
b
...
tom
d
...
00 out of 1
...
available in India
b
...
of standard size
d
...
00 out of 1
...
OTCEI Standard System of Exchange Rate
b
...
Gold Standard System of Exchange Rate
d
...
00 out of 1
...

Select one:
a
...
Transaction risk
c
...
Translation risk

Feedback
The correct answer is: Natural risk

Question 24

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...
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The example of derivative securities include
...
Swap contract
b
...
Capital markets
d
...
00 out of 1
...

Select one:
a
...
Capital markets
c
...
Long term markets

Feedback

The correct answer is: Capital markets
Question 26

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...
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An investor looking at reducing his risk is known as_____
...
Hedger
b
...
Trader
d
...
00 out of 1
...
is a deed which is executed by the company in favor of the trustees named for the benefit
of the debenture holder
...
Agreement
b
...
Trust deed
d
...
00 out of 1
...

Select one:
a
...
Public markets
c
...
Traded offering

Feedback
The correct answer is: Initial public offering
Question 29

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...
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The type of market in which securities with less than one year maturity are traded is classified as…
Select one:
a
...
Money market
c
...
Global market

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The correct answer is: Money market
Question 30

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Non banking financial institutions (NBFIs) are registered under
Select one:
a
...
RBI Act
c
...
Banking Regulation Act

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The correct answer is: Companies Act
Question 1

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When all of the debit or credit items in the balance of payments are combined ?
Select one:
a
...
Capital imports equal capital exports

c
...
The total surplus or deficit equals zero

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The correct answer is: The total surplus or deficit equals zero
Question 2

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The role of _______ is to direct one nation’s savings into investments of another nation?
Select one:
a
...
Merchandise trade flows
c
...
Current account flows

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The correct answer is: Capital flows
Question 3

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For the first time since World War I, in the mid-1980s the United States became a net international ?
Select one:
a
...
Debtor
c
...
Creditor

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The correct answer is: Debtor
Question 4

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Which of the following is true?
Select one:
a
...
None of these
c
...
Fixed exchange rate is determined by the government

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The correct answer is: Both Fixed exchange rate is determined by the government and Flexible
exchange rate is determined by market forces
Question 5

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The U
...
The U
...
The council of Economic Advisers to the President
c
...
S Department of labor
d
...
S Department of commerce

Feedback
The correct answer is: The U
...
00 out of 1
...
Balance of payments
b
...
Current account
d
...
00 out of 1
...
Obtain an accurate account of a balance of payments surplus
b
...
Insure that the sum of all debits matches the sum of all credits
d
...
00 out of 1
...
Exchange rate exposure
b
...
Translation exposure
d
...
00 out of 1
...
Reserve Bank of India
b
...
State Bank of India
d
...
00 out of 1
...
The actions of market-makers
b
...
Purchasing power parity
d
...
00 out of 1
...
Net additions made to the nation’s capital stocks
b
...
Use of capital on assets to receive returns
d
...
00 out of 1
...
To maximise the owner’s wealth
b
...
To maximise the return
d
...
00 out of 1
...
RBI
b
...
Finance ministry of India
d
...
00 out of 1
...
shifting production to a low-cost centre
b
...
reviving uneconomic units
d
...
00 out of 1
...
buy low only
b
...
buy low; sell high
d
...
00 out of 1
...
1995
b
...
1996
d
...
00 out of 1
...
None of these
b
...
Exports
d
...
00 out of 1
...
Today at a price determined today
b
...
Today at a price prevailing at some future date
d
...
00 out of 1
...
Forward market
b
...
Domestic market
d
...
00 out of 1
...
home currency quotation
b
...
American quotation
d
...
00 out of 1
...
spot transactions
b
...
value tomorrow
d
...
00 out of 1
...
Government
b
...
Demand and Supply forces
d
...
00 out of 1
...
Direct Foreign Interior
b
...
Direct Foreign Image
d
...
00 out of 1
...
Insurance
b
...
Mutual fund
d
...
00 out of 1
...
equal
b
...
lower
d
...
00 out of 1
...
Merchants
b
...
Convertible securities
d
...
00 out of 1
...

Select one:
a
...
Leading
c
...
Lagging

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The correct answer is: Exposure netting (matching)
Question 28

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Question text
Nations that have major economic expansion attract
Select one:
a
...
Exports
c
...
Privatization

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The correct answer is: FDI
Question 29

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...
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Post issue management activities include:‐
Select one:
a
...
Agreement
c
...
Power of authority

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The correct answer is: Analysis of collection
Question 30

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Question text
In India Insurance business are regulated by
Select one:
a
...
RBI
c
...
IRDA

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The correct answer is: IRDA
uestion 1

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When an enterprise has an unheeded receivable or payable denominated in a foreign currency and
settlement of the obligation has not yet taken place, that firm is said to have
Select one:
a
...
Operating exposure
c
...
Tax exposure

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The correct answer is: Transaction exposure
Question 2

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Question text
A/An ________ is an agreement between a buyer and seller that a fixed amount of one currency will be
delivered at a specified rate for some other currency
Select one:
a
...
interbank market transaction
c
...
Eurodollar transaction

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The correct answer is: foreign exchange transaction
Question 3

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...
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The price of one currency in terms of another is known as _________
Select one:
a
...
Interest rate
c
...
Foreign exchange rate

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The correct answer is: Foreign exchange rate
Question 4

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Which one is a merit of the fixed exchange rate?
Select one:
a
...
Promotes Foreign Trade

c
...
Increases Capital Formation

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The correct answer is: All of these
Question 5

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Purchases of government securities in the United States by foreigners is ?
Select one:
a
...
A debit item in the current account
c
...
A debit item in the capital account

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The correct answer is: A credit item in the capital account
Question 6

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Which items are included in the balance of trade?
Select one:
a
...
All of these
c
...
Visible Item

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The correct answer is: Visible Item
Question 7

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Balance of Trade means:
Select one:
a
...
Import and export of goods
c
...
Capital Transaction

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The correct answer is: Import and export of goods
Question 8

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The difference between a country’s balance of payments and its balance of international
indebtedness?
Select one:

a
...
Occurs because of foreign exchange fluctuations
c
...
Reflects the difference between flow and stock concepts

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The correct answer is: Reflects the difference between flow and stock concepts
Question 9

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India’s foreign exchange rate system is _______
Select one:
a
...
Managed float
c
...
Free float

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The correct answer is: Managed float
Question 10

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The foreign direct investment includes __________

Select one:
a
...
Human resources
c
...
Intellectual property

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The correct answer is: Intangible good
Question 11

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Why is market value share important
Select one:
a
...
Shareholders
c
...
The investment market

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The correct answer is: The investment market
Question 12

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Which of the following lists balance sheet items in order of liquidity (most liquid to least liquid)

Select one:
a
...
Accounts receivable, inventory, marketable securities, cash
c
...
Cash, inventory, accounts receivable, marketable securities

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The correct answer is: Cash, marketable securities, accounts receivable, inventory
Question 13

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Foreign income received in India during the previous year is taxable in the case of ________
Select one:
a
...
Demonetization
c
...
Tax evasion

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The correct answer is: Non resident
Question 14

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Question text

The main objective of international financial Management is to arrange sufficient funds for meeting
the _____________ goals of an organization
...
Intellectual property
b
...
Short term
d
...
00 out of 1
...
buy low; sell high
b
...
buy high; sell low
d
...
00 out of 1
...
DGFT
b
...
FEDAI
d
...
00 out of 1
...

Select one:
a
...
Shop
c
...
Foreign exchange market

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The correct answer is: Foreign exchange market
Question 18

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Question text
Hybrid in management of fixed and flexible exchange rate is known as ________
Select one:
a
...
Interest rate
c
...
Managed to float

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The correct answer is: Managed to float
Question 19

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Question text
Which of the following option complete the sentence? A bank is solvent as long as it
...
Has enough capital to pay off depositors
b
...
Does not experience a run on its deposits
d
...
00 out of 1
...
The yield to maturity should be used in comparing bonds which are to be held to maturity; the
current yield for comparing bonds which are to be sold before maturity
b
...
The yield to maturity should be used in comparing bonds which are to be held to maturity; the
current yield for comparing bonds which are to be sold before maturity
d
...
00 out of 1
...
attempt to make profits by outguessing the market
b
...
make their profits through the spread between bid and offer rates of exchange
d
...
00 out of 1
...
uncertainty associated with expected event leading to losses or gains
b
...
chance of losing business
d
...
00 out of 1
...
Sector allocation
b
...
Factor allocation
d
...
00 out of 1
...

Select one:
a
...
Trust deed
c
...
Contract

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The correct answer is: Certificate
Question 25

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Which of the following is /are example of primary or direct financial instrument
Select one:
a
...
Fixed deposit receipt
c
...
Insurance policies

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The correct answer is: Debentures

Question 26

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Which of the following is not an example of a frequently used Euro-instrument?
Select one:
a
...
Eurobond
c
...
Euro note

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The correct answer is: Euro stock
Question 27

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Question text
Reserves are held in the following forms, except
Select one:
a
...
Gold
c
...
SDR

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The correct answer is: Silver

Question 28

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The type of structured market through which the funds flow with the help of financial instruments
such as bond and stock is classified as –
Select one:
a
...
Financial market
c
...
Flow market

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The correct answer is: Financial market
Question 29

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...
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Question text
When was IMF established?
Select one:
a
...
27, 1945
b
...
24, 1947
c
...
1, 1946
d
...
30, 1947

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The correct answer is: Dec
...
00 out of 1
...
Low transaction costs
b
...
Flexible costs
d

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