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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. Page-10 section-1

Each section contains 100 MCQs on International Finance and Treasury .
91
A credit in balance of payments indicates
Discuss
Answer & Solution
Answer: Option C
Solution:
A credit in balance of payments indicates earning of foreign exchange by the country. The balance of payments (BOP) is the place where countries record their monetary transactions with the rest of the world.
92
A debit in balance of payments does not indicate
Discuss
Answer & Solution
Answer: Option D
Solution:
A debit in balance of payments does not indicate export of goods and services.
93
The current account of balance of payments includes
Discuss
Answer & Solution
Answer: Option B
Solution:
The current account of balance of payments includes Portfolio investments. An investment portfolio is a collection of assets owned by an individual or by an institution. But most investment portfolios, particularly portfolios that are assembled to pay for a retirement, are made up mainly of securities, such as stocks, bonds, mutual funds, money market funds and exchange traded funds.
94
A country has a negative balance of trade it means the balance of payments on current account
Discuss
Answer & Solution
Answer: Option D
Solution:
A country has a negative balance of trade it means the balance of payments on current account should be same as balance of trade. The balance of trade is the difference between the value of a country's imports and exports for a given period. The balance of trade is the largest component of a country's balance of payments.
95
The current account of balance of payments does not include
Discuss
Answer & Solution
Answer: Option A
Solution:
The current account of balance of payments does not include trade in goods. Trade in goods and services is defined as the transactions in goods and services between residents and non-residents. It is measured in million USD, as percentage of GDP for net trade, and also in annual growth for exports and imports.
96
The capital account of balance of payments represents
Discuss
Answer & Solution
Answer: Option C
Solution:
The capital account of balance of payments represents Investment made by the countries resident abroad, but not vice versa.
97
Country A imports gold worth USD 100 million for commercial purposes. The transaction will affect
Discuss
Answer & Solution
Answer: Option D
Solution:
Country A imports gold worth USD 100 million for commercial purposes. The transaction will affect both current account and capital account.
98
Money received for purchase of shares in Indian company by a foreign investor will be treated as foreign direct investment if
Discuss
Answer & Solution
Answer: Option D
Solution:
Money received for purchase of shares in Indian company by a foreign investor will be treated as foreign direct investment if the shares are acquired other than through stock exchange. NRIs are also allowed to contribute to capital of Indian companies by investing in shares on Recognized Stock Exchanges under Portfolio Investment Route.
99
ADR/GDR can be issued
Discuss
Answer & Solution
Answer: Option A
Solution:
ADR/GDR can be issued only by listed companies. With the help of ADR, foreign companies can trade in US stock market, through various bank branches. On the other hand, GDR helps foreign companies to trade in any country's stock market other than the US stock market, through ODB's branches. ADR is issued in America while GDR is issued in Europe.
100
The apex body of the Foreign Trade is
Discuss
Answer & Solution
Answer: Option C
Solution:
The apex body of the Foreign Trade is The Ministry of Commerce. The Ministry of Commerce and Industry administers two departments, the Department of Commerce and the Department for Promotion of Industry & Internal Trade.