International Finance and Treasury MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9

21.
For contingency exposure of foreign exchange, the best derivative that can be used to hedge is

A. Forwards

B. Futures

C. Options

D. Swaps

Answer & Solution Discuss in Board Save for Later

22.
Japan yen denominated Bond issued in Japan domestic Market

A. Yankee Bond

B. Samurai Bond

C. Bull dog Bond

D. Dual Bond

Answer & Solution Discuss in Board Save for Later

23.
An option at-the-money when

A. The strike price is greater than the spot price, in the case of a call option

B. The strike price is greater than spot price, in the case of a put option

C. The option has a ready market

D. The strike price and the spot price are the same

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24.
The intrinsic value of a Call option is

A. Strike price - Underlying Price

B. Underlying price - Strike Price

C. Strike price > Underlying price

D. Strike price < Underlying price

Answer & Solution Discuss in Board Save for Later

25.
Which of the countries did not become a member of the Economic and Monetary Union as on Jan 1 1999.

A. Britain

B. France

C. Germany

D. Italy

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26.
The acronym CIRCUS stands for

A. Current Interest Rate Swap

B. Circular Currency Swap

C. Combined Income Range Currency Swap

D. Combined Interest Rate and Currency Swap

Answer & Solution Discuss in Board Save for Later

27.
Under the interest rate option, the buyer

A. Avoids unfavourable movement in interest rates

B. Gains from favorable movement in interest rates

C. Both a and b

D. Gains nothing, only the seller gains

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28.
An interest rate cap is a series of

A. Call options

B. Put options

C. Periodical payments

D. Differential payments

Answer & Solution Discuss in Board Save for Later

29.
FRAs can’t be used for

A. Hedging

B. Arbitraging

C. Speculating

D. Any of the Above

Answer & Solution Discuss in Board Save for Later

30.
Euro is the official currency of

A. All the States of Europe

B. All the states of European Union

C. Only 12 of the states of European Union

D. Only 10 of the States of European Union

Answer & Solution Discuss in Board Save for Later

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

21. For contingency exposure of foreign exchange, the best derivative that can be used to hedge is

Answer & Solution

22. Japan yen denominated Bond issued in Japan domestic Market

Answer & Solution

23. An option at-the-money when

Answer & Solution

24. The intrinsic value of a Call option is

Answer & Solution

25. Which of the countries did not become a member of the Economic and Monetary Union as on Jan 1 1999.

Answer & Solution

26. The acronym CIRCUS stands for

Answer & Solution

27. Under the interest rate option, the buyer

Answer & Solution

28. An interest rate cap is a series of

Answer & Solution

29. FRAs can’t be used for

Answer & Solution

30. Euro is the official currency of

Answer & Solution

Read More Section(International Finance and Treasury)

21.
For contingency exposure of foreign exchange, the best derivative that can be used to hedge is

22.
Japan yen denominated Bond issued in Japan domestic Market

23.
An option at-the-money when

24.
The intrinsic value of a Call option is

25.
Which of the countries did not become a member of the Economic and Monetary Union as on Jan 1 1999.

26.
The acronym CIRCUS stands for

27.
Under the interest rate option, the buyer

28.
An interest rate cap is a series of

29.
FRAs can’t be used for

30.
Euro is the official currency of