ExamVeda
Login
Home

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-7

Each section contains 100 MCQs on International Finance and Treasury .
91
International capital market
Discuss
Answer & Solution
Answer: Option D
Solution:
International capital market foreign exchange rates. An international capital market is a financial system by which governments, companies and individuals borrow and invest money trans-nationally. It is comparable to a capital market, which enables government entities, companies and individuals to borrow and invest domestically.
92
Order cost is cost of the
Discuss
Answer & Solution
Answer: Option B
Solution:
Order cost is cost of the processing order. Ordering costs are the expenses incurred to create and process an order to a supplier. These costs are included in the determination of the economic order quantity for an inventory item.
93
Ask quote is for
Discuss
Answer & Solution
Answer: Option A
Solution:
Ask quote is for seller. The ask price represents the minimum price that a seller is willing to take for that same security. A trade or transaction occurs after the buyer and seller agree on a price for the security which is no higher than the bid and no lower than the ask.
94
A firm that purpose to connect sellers and buyers of foreign currency-denominated bank deposits is entitled
Discuss
Answer & Solution
Answer: Option B
Solution:
A firm that purpose to connect sellers and buyers of foreign currency-denominated bank deposits is entitled a broker. A broker is an individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. A broker also refers to the role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.
95
A simultaneous purchase and sale of foreign exchange for two different dates
Discuss
Answer & Solution
Answer: Option B
Solution:
A simultaneous purchase and sale of foreign exchange for two different dates currency swap. A currency swap is an agreement in which two parties exchange the principal amount of a loan and the interest in one currency for the principal and interest in another currency.
96
If your local currency is in variable form and foreign currency is in fixed form quotation will be:
Discuss
Answer & Solution
Answer: Option B
Solution:
If your local currency is in variable form and foreign currency is in fixed form quotation will be direct. A local currency, is a currency that can be spent a particular area at participating organisations. Usually it will act as a complementary currency, that is to be used in additional to a national currency, rather than replace it.
97
In a quote exchange rate, currency that is to be purchase with another currency is called :
Discuss
Answer & Solution
Answer: Option D
Solution:
In a quote exchange rate, currency that is to be purchase with another currency is called base currency. A base currency is the first currency that appears in a forex pair quotation. In the foreign exchange market, one currency will always be quoted in relation to another because you are buying one while selling the other.
98
Holding an inventory have
Discuss
Answer & Solution
Answer: Option C
Solution:
Holding an inventory have opportunity cost. Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another. While financial reports do not show opportunity cost, business owners can use it to make educated decisions when they have multiple options before them.
99
Today, important factor that result in augmentation in international bond market is
Discuss
Answer & Solution
Answer: Option A
Solution:
Today, important factor that result in augmentation in international bond market is low interest rates. The foreign bond market includes the bonds that are sold in a country using that country's currency but issued by a non-domestic borrower.
100
Governments enforce currency limitations to
Discuss
Answer & Solution
Answer: Option D
Solution:
Governments enforce currency limitations to protect a currency from speculators, keep resident individuals and businesses from investing in other nations and preserve hard currencies to finance trade deficits or repay debts.