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International Financial Management - Sec C

55 Questions  I  By Sarathyashi
Management Quizzes & Trivia
This is IFM quiz for students of Semester 2 July 12-13 batch (Sec C), Alliance School of Business, Bangalore.

This quiz will be for 20 minutes students need to answer 30 questions.


By Prof. Sarath Babu

  
Changes are done, please start the quiz.


Question Excerpt

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1.  Which of the following is not a form of corporate control that could reduce agency problems for an MNC?
A.
B.
C.
D.
2.  What is the size of a unit for Yen future currency trading in India?
A.
B.
C.
D.
3.  Which of the following is not a way in which agency problems can be reduced through corporate control?
A.
B.
C.
D.
4.  Which of the following does not facilitate, Inter bank transaction globally
A.
B.
C.
D.
5.  What is Option price
A.
B.
C.
D.
6.  To close a position, you need to buy or sell _________ amount of the open order, thereby reducing the open position to zero.
A.
B.
C.
D.
7.  Mr. A bought 10 quantities call option from Mr. B and sold it to Mr. C. What is OI and traded Volume
A.
B.
C.
D.
8.  Currency devaluation can boost a country's exports, but currency revaluation can increase foreign competition.
A.
B.
9.  An increase in UK interest rates relative to India's interest rates is likely to ________ the UK demand for Rupees and _________ the supply of Rupees for sale.
A.
B.
C.
D.
10.  The international Fisher effect (IFE) suggests that:
A.
B.
C.
D.
11.  Peso is currency of
A.
B.
C.
D.
12.  An example of cross-hedging is:
A.
B.
C.
D.
13.  Futures contracts are typically _______; forward contracts are typically _______.
A.
B.
C.
D.
14.  SDRs are
A.
B.
C.
D.
15.  What is the most traded pair on the Forex?
A.
B.
C.
D.
16.  Assume a two-country world: Country A and Country B. Which of the following is correct about purchasing power parity (PPP) as related to these two countries?
A.
B.
C.
D.
17.  Which of the following currency is not traded in Indian future market?
A.
B.
C.
D.
18.  __________ is (are) not a determinant of translation exposure
A.
B.
C.
D.
19.  An increases in US exports to foreign markets ________________ the amount of dollars in the foreign exchange and _______________ the value of the US dollar
A.
B.
C.
D.
20.  European currency options can be exercised _______; American currency options can be exercised _______.
A.
B.
C.
D.
21.  A share of the ADR of a Dutch firm represents one share of that firm's stock that is traded on a Dutch stock exchange. The share price of the firm was 15 Euros when the Dutch market closed. As the U.S. market opens, the Euro is worth $1.10. Thus, the price of the ADR should be _____.
A.
B.
C.
D.
22.  What would be the cost of borrowing, if an Indian firms borrows money from US, Interest rate in US is 6%, India - 9% and Dollar appreciation rate – 3%
A.
B.
C.
D.
23.  Eurobonds are certificates representing bundles of stock.
A.
B.
24.  An increase in the current account deficit will place _______ pressure on the home currency value, other things equal
A.
B.
C.
D.
25.  What is a floating exchange rate?
A.
B.
C.
D.
26.  Which of the following is not true about a poly-centric solution to international financial management?
A.
B.
C.
D.
27.  Based on interest rate parity, the larger the degree by which the foreign interest rate exceeds the UK interest rate, the:-
A.
B.
C.
D.
28.  What is weight of US Dollar in SDR for January 11 to December 15
A.
B.
C.
D.
29.  When the foreign exchange market opens in the UK each morning, the opening exchange rate quotations will be based on the:-
A.
B.
C.
D.
30.  A weakening of the U.S. dollar with respect to the British pound would likely reduce the U.S. exports to Britain and increase U.S. imports from Britain.
A.
B.
31.  The forward rate is the exchange rate used for immediate exchange of currencies
A.
B.
32.  A _________ is equal to 0.01 for exchange rates expressed to two decimal places, or 0.0001 for exchange rates expressed to four decimal places
A.
B.
C.
D.
33.  From 1944 to 1971, the exchange rate between any two currencies was typically:-
A.
B.
C.
D.
34.  Buy = _________ and Sell = _________.
A.
B.
C.
D.
35.  Over time, the economic interdependence of nations have:
A.
B.
C.
D.
36.  When a company adopts the Home Market orient policy
A.
B.
C.
D.
37.  A firm will likely benefit most from diversifying if:
A.
B.
C.
D.
38.  Futures contracts are typically _______; forward contracts are typically _______.
A.
B.
C.
D.
39.  Which one of the following is  not a form of FDI
A.
B.
C.
D.
40.  The commonly accepted goal of the MNC is to:-
A.
B.
C.
D.
41.  Assume that a bank's bid rate on Swiss francs is £0.25 and its ask rate is £0.26. Its bid-ask percentage spread is:
A.
B.
C.
D.
42.  Which of the following statements is true?
A.
B.
C.
D.
43.  Assume that a Japanese car manufacturer exports cars to U.S. dealerships, which are priced in yen. The demand for those cars declines when the yen is strong. The manufacturer also produces some cars in the U.S. with U.S. materials and those cars are priced in dollars. The manufacturer could reduce its economic exposure by:
A.
B.
C.
D.
44.  When you own ______, there is no obligation on your part; however, when you own _____, there is an obligation on your part
A.
B.
C.
D.
45.  Licensing is the process by which a firm provides its technology (copyrights, patents, trademarks or trade names) in exchange for fees or some other specified benefits.
A.
B.
46.  When Spread is low, which is not true?
A.
B.
C.
D.
47.  Which of the following theories suggests that firms seek to penetrate new markets over time?
A.
B.
C.
D.
48.  The currency of country X is pegged to the currency of country Y. Assume that county Y's currency depreciates against the currency of country Z. It is likely that country X will export _______ to country Z and import _______ from country Z.
A.
B.
C.
D.
49.  In which case will locational arbitrage most likely be feasible?
A.
B.
C.
D.
50.  The strike price is also known as the premium price.
A.
B.
51.  Assume the Canadian dollar is equal to £0.51 and the Peruvian Sol is equal to £0.16. The value of the Peruvian Sol in Canadian dollars is:-
A.
B.
C.
D.
52.  The forward market is especially well-suited to offer hedging protection against
A.
B.
C.
D.
53.  Which of the following is not listed in ADR
A.
B.
C.
D.
54.  Under the gold standard, each currency was convertible into gold at a specified rate and the exchange rate between two currencies was determined by their relative convertibility rates per ounce of gold.
A.
B.
55.  In general, when speculating on exchange rate movements, the speculator will borrow the currency that is expected to appreciate and invest in the country whose currency is expected to depreciate.
A.
B.
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