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International Finance and Treasury MCQ Questions and Solutions with Explanations | Management

International Finance and Treasury MCQ Questions and answers with easy and logical explanations. Management provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. International FinanceMCQ is important for exams like MAT, CAT, CA, CS, CMA, CPA, CFA, UPSC, Banking and other Management department exam.

Each section contains 100 MCQs on International Finance and Treasury .
1
The world’s four major trading currencies are all free to float against each other. They include all the following except.
Discuss
Answer & Solution
Answer: Option C
Solution:
The world’s four major trading currencies are all free to float against each other. They include all the following except The Spanish Peso.
2
Not a profit maximizing business is
Discuss
Answer & Solution
Answer: Option B
Solution:
International bank for Reconstruction and Development is not a profit maximizing business. The International Bank for Reconstruction and Development (IBRD) is an international financial institution that offers loans to middle-income developing countries. The IBRD is the first of five member institutions that compose the World Bank Group, and is headquartered in Washington, D.C. in the United States.
3
Gifts and Relief are
Discuss
Answer & Solution
Answer: Option D
Solution:
Gifts and Relief are Transfer payment. A transfer payment is money paid to an individual who has not performed any service or rendered any goods for it. Transfer payments are ways for local, state, and federal governments to redistribute money to those in need. Transfer payments are considered income and are potentially taxable.
4
Nations that have major economic expansion attract
Discuss
Answer & Solution
Answer: Option B
Solution:
Nations that have major economic expansion attract Direct Foreign Investment. Foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country.
5
The term Euro currency Market refers to
Discuss
Answer & Solution
Answer: Option C
Solution:
The term Euro currency Market refers to the market where the borrowing and lending of currencies take place outside the country of issue. The eurocurrency market is the money market in which currency held in banks outside of the country where it is legal tender is borrowed and lent by banks.
6
Bond issued simultaneously in several global financial center is
Discuss
Answer & Solution
Answer: Option C
Solution:
Bond issued simultaneously in several global financial center is Global Bond. A global bond is a type of bond that can be traded in a domestic or European market. It is a bond issued and traded outside the country where the currency of the bond is denominated. This type of bond is issued by a non-European company but sells in a European country or any other foreign market.
7
IMF is firm of
Discuss
Answer & Solution
Answer: Option A
Solution:
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 190 member countries, with headquarters in Washington, D.C.
8
In a quote exchange rate, the currency that is to purchase with another currency is called
Discuss
Answer & Solution
Answer: Option D
Solution:
In a quote exchange rate, the currency that is to purchase with another currency is called Base currency. The base currency – also called the transaction currency is the first currency appearing in a currency pair quotation, followed by the second part of the quotation, called the quote currency or the counter currency.
9
Which of the following theories suggests that firms seek to penetrate new markets over time?
Discuss
Answer & Solution
Answer: Option C
Solution:
Product cycle theory suggests that firms seek to penetrate new markets over time. The International Product Life Cycle Theory was authored by Raymond Vernon in the 1960s to explain the cycle that products go through when exposed to an international market. The cycle describes how a product matures and declines as a result of internationalization.
10
US Dollar denominated bond issued in US domestic Market
Discuss
Answer & Solution
Answer: Option A
Solution:
Yankee Bond is the US Dollar denominated bond issued in US domestic Market. Yankee bonds are registered & monitored by Securities & Exchange Commission (SEC). These bonds are usually issued by foreign banks, corporations & government.