Scribd
Upload
25 views

Foreign-Exchange-Management (Set 2)

This document contains 127 multiple choice questions about foreign exchange management. The questions cover topics such as balance of payments, foreign trade policy, India's share of world trade, special economic zones, currency systems, interest rates, foreign direct investment, current accounts, and factors that influence exchange rates. The majority of the questions have a single correct answer that is labeled A, B, C or D.

Uploaded by

sumitj.rcg
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
25 views

Foreign-Exchange-Management (Set 2)

This document contains 127 multiple choice questions about foreign exchange management. The questions cover topics such as balance of payments, foreign trade policy, India's share of world trade, special economic zones, currency systems, interest rates, foreign direct investment, current accounts, and factors that influence exchange rates. The majority of the questions have a single correct answer that is labeled A, B, C or D.

Uploaded by

sumitj.rcg
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 6

Foreign Exchange Management

2 of 2 sets

101. . A country has a negative balance of trade. It means the balance of payments
on current account
A. Should also be negative
B. Should be positive
C. May be positive or negative
D. Should be same as balance of trade
Answer:C

102. The Foreign Trade policy was first introduced in the year:
A. 1981.
o m
B. 1947.
. c
C. 1992.
te
D. 2000.
a
Answer:C
q M
c
M
103. The present share of India’s trade in the world trade is
A. less than 1 per cent.
B. 1.2 per cent.
C. 1.5 per cent.
D. 1.8 per cent.
Answer:C

104. The apex body of the Foreign Trade is:


A. The Central Government.
B. The State Government.
C. The Ministry of Commerce.
D. All the above.
Answer:C

105. The tenure of the Foreign Trade policy is


A. 3 years.
B. 5 years.
C. 1 year.
D. 7 years.
Answer:B

106. The geographically distributed area or zone where the economic laws are
more liberal as compared to other parts of the country is called
A. EOU
B. SEZ.
C. AEZ.
D. FTZ.
Answer:B

107. Islamic nations follow


A. Common law
B. Civil law.
C. Criminal Law.
D. Religious law.
Answer:D

108. What does CCIE stand for?


A. Chief Controller of Imports and Exports.
B. Central Cottage Industries Exports.
C. Control on Cotton Imports and Exports.
D. Commissioner of Central Imports and Exports.
Answer:A

109. The total value of the products and services marketed by a nation is called:
A. Gross Domestic Product.
B. Gross National Product.
C. National Income
D. Per capita income.
Answer:D

110. To what extent is FDI permitted in the FTWZ?


A. 50%

View all MCQ's at McqMate.com


B. 60%
C. 75%
D. 100%
Answer:A

111. The WTO Agreement related to investment measures is:


A. TRIPS.
B. TRIMS.
C. GATS.
D. TCA.
Answer:D

112. The major players in the foreign exchange market are


A. commercial banks.
B. corporate.
C. exchange brokers.
D. central bank of the country and the Central Government
Answer:C

113. Derivatives can be used by an exporter for managing


A. currency risk.
B. cargo risk.
C. credit risk.
D. business risk.
Answer:C

114. The forward market is especially well-suited to offer hedging protection


against
A. translation risk exposure.
B. transactions risk exposure.
C. political risk exposure.
D. taxation
Answer:C

115. The euro is the name for


A. a currency deposited outside its country of origin.

View all MCQ's at McqMate.com


B. a bond sold internationally outside of the country in whose currency
C. the bond is denominated
D. a common European currency.
Answer:B

116. Which of the following are international financial considerations faced by


both small and large MNEs?
A. Currency systems
B. Tax systems
C. Interest rates
D. Exchange rate
Answer:C

117. Strategies in which funds are moved from one MNE operation to another are
called
A. funds positioning techniques
B. arm's length techniques.
C. fronting techniques.
D. subsidiary flows.
Answer:A

118. Markets in which funds are transferred from those who have excess funds
available to those who have a shortage of available funds are called
A. commodity markets.
B. fund-available markets.
C. derivative exchange markets.
D. financial markets.
Answer:B

119. The bond markets are important because


A. they are easily the most widely followed financial markets in the United States.
B. they are the markets where foreign exchange rates are determined.
C. they are the markets where interest rates are determin
Answer:B

120. Most FDI and trade are made by:

View all MCQ's at McqMate.com


A. China, Japan and the US.
B. The US, the EU, and Japan
C. North America
D. ASEAN countries
Answer:D

121. The EU is the major provider of FDI for:


A. Eastern Europe.
B. South America.
C. developing Asian countries
D. all of these regions.
Answer:C

122. Markets in which funds are transferred from those who have excess funds
available to those who have a shortage of available funds are called
A. commodity markets.
B. fund-available markets.
C. derivative exchange markets.
D. financial markets.
Answer:A

123. Increasing interest rates


A. discourage corporate investments.
B. . discourage individuals from saving.
C. encourage corporate expansion.
D. encourage corporate borrowing.
Answer:D

124. Which of the following is not considered a unilateral transfer?


A. foreign aid from one government to another
B. income earned from foreign investments
C. personal gifts to friends in foreign countries
D. donations to foreign countries from non-government
Answer:A

View all MCQ's at McqMate.com


125. An increase in the current account deficit will place _______ pressure on the
home currency value, other things equal
A. upward.
B. downward
C. no
D. upward or downward
Answer:D

126. Which of the following would likely have the least direct influence on a
country's current account?
A. Inflation.
B. National income.
C. Exchange rates
D. A tax on income earned from foreign stocks
Answer:A

127. The primary component of the current account is the:


A. balance of trade.
B. balance of money market flows
C. balance of capital market flows
D. unilateral transfers.
Answer:B

View all MCQ's at McqMate.com

You might also like