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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 currency is not traded in Indian future market?
A.
B.
C.
D.
2.  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.
3.  Buy = _________ and Sell = _________.
A.
B.
C.
D.
4.  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.
5.  European currency options can be exercised _______; American currency options can be exercised _______.
A.
B.
C.
D.
6.  Which of the following is not a form of corporate control that could reduce agency problems for an MNC?
A.
B.
C.
D.
7.  Peso is currency of
A.
B.
C.
D.
8.  What is weight of US Dollar in SDR for January 11 to December 15
A.
B.
C.
D.
9.  Forfeiting most closely resembles
A.
B.
C.
D.
10.  The strike price is also known as the premium price.
A.
B.
11.  Translation exposure reflects:
A.
B.
C.
D.
12.  The international Fisher effect (IFE) suggests that:
A.
B.
C.
D.
13.  Which of the following theories suggests that firms seek to penetrate new markets over time?
A.
B.
C.
D.
14.  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.
15.  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.
16.  Which of the following is not listed in ADR
A.
B.
C.
D.
17.  Which of the following is not a way in which agency problems can be reduced through corporate control?
A.
B.
C.
D.
18.  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.
19.  What is Option price
A.
B.
C.
D.
20.  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.
21.  When a company adopts the Home Market orient policy
A.
B.
C.
D.
22.  A firm will likely benefit most from diversifying if:
A.
B.
C.
D.
23.  The commonly accepted goal of the MNC is to:-
A.
B.
C.
D.
24.  Over time, the economic interdependence of nations have:
A.
B.
C.
D.
25.  An example of cross-hedging is:
A.
B.
C.
D.
26.  Eurobonds are certificates representing bundles of stock.
A.
B.
27.  An increase in the current account deficit will place _______ pressure on the home currency value, other things equal
A.
B.
C.
D.
28.  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.
29.  What is a floating exchange rate?
A.
B.
C.
D.
30.  Assume that the inflation rate in Canada is 3.20%, while the inflation rate in the U.S. is 3.00%. According to PPP, the Canadian dollar (CAD) should _______ by _______%.
A.
B.
C.
D.
31.  SDRs are
A.
B.
C.
D.
32.  In which case will locational arbitrage most likely be feasible?
A.
B.
C.
D.
33.  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.
34.  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.
35.  When Spread is low, which is not true?
A.
B.
C.
D.
36.  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.
37.  What is the most traded pair on the Forex?
A.
B.
C.
D.
38.  Which of the following is not true about a poly-centric solution to international financial management?
A.
B.
C.
D.
39.  From 1944 to 1971, the exchange rate between any two currencies was typically:-
A.
B.
C.
D.
40.  Which of the following statements is true?
A.
B.
C.
D.
41.  Which one of the following is  not a form of FDI
A.
B.
C.
D.
42.  The forward rate is the exchange rate used for immediate exchange of currencies
A.
B.
43.  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.
44.  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.
45.  Futures contracts are typically _______; forward contracts are typically _______.
A.
B.
C.
D.
46.  Currency devaluation can boost a country's exports, but currency revaluation can increase foreign competition.
A.
B.
47.  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.
48.  Which of the following does not facilitate, Inter bank transaction globally
A.
B.
C.
D.
49.  __________ is (are) not a determinant of translation exposure
A.
B.
C.
D.
50.  If the interest rate is lower in the U.S. than in the United Kingdom and if the forward rate of the British pound is the same as its spot rate:-
A.
B.
C.
D.
51.  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.
52.  The exchange rates of smaller countries are very stable because the market for their currency is very liquid.
A.
B.
53.  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.
54.  The forward market is especially well-suited to offer hedging protection against
A.
B.
C.
D.
55.  What is the size of a unit for Yen future currency trading in India?
A.
B.
C.
D.
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