International Finance - 2

Multiple Choice Multiple Answer
Question
What schemes have been floated by RBI for facilitating Inter bank transactions?
Correct Answer
Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market
Your Answer
Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates

Select The Blank
Question
________ is the agency of ICC which deals with the maritime crime.
Correct Answer
International Maritime Bureau
Your Answer
International Maritime Bureau

Multiple Choice Single Answer
Question
Which of them are special funding facilities of IMF ?
Correct Answer
Buffer Stock Facility
Your Answer
Buffer Stock Facility

True/False
Question
Cross currency forward contract is not meaningful if original contract is in Rupees to USD
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
What does a speculator accept while dealing with an option?
Correct Answer
The exercise or strike price, the amount , The expiration date and time, the method of payment
Your Answer
The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option

Multiple Choice Single Answer
Question
Which is the most actively traded currency in the international market today?
Correct Answer
US Dollar
Your Answer
US Dollar

Match The Following
Question
Correct Answer
Your Answer
Intolerable risk
Drop the investment project
Drop the investment project
Country risk analysis
Cost of evluation does not justify analysis
Cost of evluation does not justify analysis
Stock market analysis
Banks are ahead
Factors' values
Weightages %
Factors' values
100% of total

Select The Blank
Question
Global capital market can be understood from the study of ________.
Correct Answer
Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Your Answer
Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country

Multiple Choice Single Answer
Question
For a spot transaction carried out on Thursday, currencies will be exchanged on :-
Correct Answer
Monday
Your Answer
Monday

Multiple Choice Single Answer
Question
Under which category of exchange rate did the Indian Rupee came from June 92?
Correct Answer
Other managed Floating
Your Answer
Pegged to Single currency

Match The Following
Question
Correct Answer
Your Answer
Maturity of future
Time when actual commodity is delivered
Last date of exercising option
Note issuance facility
Euronotes
Euronotes
Bearer security issued in currency other than that of the country of issue
Eurobonds
Eurobonds
Margin on future
Peformance bond or security deposit
Peformance bond or security deposit

True/False
Question
Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument.
Correct Answer
False
Your Answer
False

True/False
Question
The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
What are margins, with reference to futures market?
Correct Answer
Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Your Answer
Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts

Multiple Choice Single Answer
Question
What is the volume of the world's average daily transactions in foreign exchange?
Correct Answer
USD 1 trillion
Your Answer
USD 1 trillion

Multiple Choice Single Answer
Question
NIF is basically an agreement :-
Correct Answer
By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers
Your Answer
Which enables the investor to market the same in the secondary market

Multiple Choice Single Answer
Question
What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992?
Correct Answer
USD 275 Billion
Your Answer
USD 275 Billion

Multiple Choice Single Answer
Question
What Preshipment facility is granted by EXIM Bank to an exporter?
Correct Answer
Preshipment credit beyond six months for construction and turnkey projects abroad
Your Answer
Preshipment credit up to six months for construction and turnkey projects abroad

Select The Blank
Question
Over the years ________has been the most widely accepted currency in international capital market.
Correct Answer
American Dollar
Your Answer
American Dollar

Select The Blank
Question
As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily.
Correct Answer
Economies
Your Answer
Currencies

Multiple Choice Single Answer
Question
Which currency is traded in one leg of about 70% of the world's transactions?
Correct Answer
US Dollar
Your Answer
US Dollar

Select The Blank
Question
________ is the acid test for events to be included in country risk.
Correct Answer
Control by Government'
Your Answer
Recurrence

Select The Blank
Question
The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________.
Correct Answer
Brussels
Your Answer
Brussels

Multiple Choice Single Answer
Question
What is Risk Syndication facility?
Correct Answer
Sharing of risk of non payment by supplier
Your Answer
Sharing risk of Non payment by the Syndicate of Banks giving loans

True/False
Question
If ERD > IRD hen exporter should availa Rupee finance
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
The characteristics of an International documentary credit are :-
Correct Answer
It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country
Your Answer
It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country

Multiple Choice Multiple Answer
Question
Which debits are permitted to EEFC accounts?
Correct Answer
Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
Your Answer
Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them

True/False
Question
Funding Options in domestic yen market are Futures, FRAs, Call and put options.
Correct Answer
True
Your Answer
True

True/False
Question
There is no difference between CIP and CIF contracts except the mode of transportation.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
Financial management is complex process for
Correct Answer
Companies which have international trade
Your Answer
Companies which have international trade

Select The Blank
Question
When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________.
Correct Answer
Core activity
Your Answer
Primary activity

Select The Blank
Question
A Credit can be a confirmed credit only if it is also ________.
Correct Answer
An Irrevocable credit
Your Answer
An Irrevocable credit

True/False
Question
The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs?
Correct Answer
USD 1=Rs 50.5000
Your Answer
USD 1=Rs 50.5000

Multiple Choice Multiple Answer
Question
Export finance
Correct Answer
Preshipment credit , Post shipment credit , Duty Draw back
Your Answer
Preshipment credit , Post shipment credit , Buyers credit

Multiple Choice Multiple Answer
Question
Internationally only those currencies are in demand
Correct Answer
Which are convertible , Which have liquidity confirmed in Euro market operations
Your Answer
Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value

Multiple Choice Multiple Answer
Question
What are the functions of Asian Development Bank?
Correct Answer
Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Your Answer
Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market

Multiple Choice Multiple Answer
Question
What does the word '"Tombstone" stand for?
Correct Answer
Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Your Answer
Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue

Select The Blank
Question
Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________.
Correct Answer
Euro Commercial Papers
Your Answer
Euro Commercial Papers

Multiple Choice Single Answer
Question
Why are various methods of financial analysis used for assessing a cross border project ?
Correct Answer
To weed out unviable projects and rank profitable ones
Your Answer
To weed out unviable projects and rank profitable ones

Multiple Choice Single Answer
Question
Examples of hedge are:
Correct Answer
Buy when you are having short position
Your Answer
Buy when you are having short position

Multiple Choice Multiple Answer
Question
What is the effect of cross currency option on the customer?
Correct Answer
He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Your Answer
He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies

Select The Blank
Question
Forward margin makes a currency cheaper then the currency is at ________.
Correct Answer
Discount
Your Answer
Discount

Multiple Choice Single Answer
Question
Why does a person need protection from unfavourable movement of exchange rate?
Correct Answer
Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Your Answer
Unfavourable fluctuations in exchange rate can wipe out the normal business profit

Multiple Choice Single Answer
Question
The capital market is said to be volatile when
Correct Answer
Prices of capital market instruments change and are expected to change drastically
Your Answer
Prices of capital market instruments change and are expected to change drastically

True/False
Question
JV means Joint venture and WOS means World of Security.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
What is the criteria for an Indian Company for Direct Investment abroad?
Correct Answer
Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent
Your Answer
Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed