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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-3 section-2

Each section contains 100 MCQs on International Finance and Treasury .
21
Foreign Exchange Regulation Act was replaced with The Foreign Exchange Management Act in the year.
Discuss
Answer & Solution
Answer: Option A
Solution:
Foreign Exchange Regulation Act was replaced with The Foreign Exchange Management Act in the year 1973 and it came in force from January 1, 1974. It was amended by the Foreign Exchange Regulation (Amendment) Act 1993 and later in 2000, was replaced by FEMA.
22
The common types of Intellectual property include.
Discuss
Answer & Solution
Answer: Option B
Solution:
The common types of Intellectual property include Patents and industrial design rights. Intellectual property is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The most well-known types are copyrights, patents, trademarks, and trade secrets.
23
The insurance policy that covers exporters against commercial and political risk is.
Discuss
Answer & Solution
Answer: Option D
Solution:
The insurance policy that covers exporters against commercial and political risk is Fire insurance. Under this policy, the insurer covers some of the buyers and in case of any event, pays an agreed percentage of an invoice.
24
The penalty for the contravention of foreign trade rules is decided by.
Discuss
Answer & Solution
Answer: Option B
Solution:
The penalty for the contravention of foreign trade rules is decided by The Adjudicating authority. The Central Government shall, by notification, appoint one or more Adjudicating Authorities to exercise jurisdiction, powers and authority conferred by or under this Act.
25
Export control refers to restrictions on.
Discuss
Answer & Solution
Answer: Option C
Solution:
Export control refers to restrictions on from firms exporting to the country. Federal export control laws restrict the export of goods, technology, related technical data, and certain services in the interest of protecting the national security and domestic economy.
26
The operating risk in the host country does not include the risk of.
Discuss
Answer & Solution
Answer: Option D
Solution:
The operating risk in the host country does not include the risk of sanctions. Operational risk is the prospect of loss resulting from inadequate or failed procedures, systems or policies. Employee errors. Systems failures. Fraud or other criminal activity. Any event that disrupts business processes.
27
Which exchange commenced trading in currency in 1982
Discuss
Answer & Solution
Answer: Option A
Solution:
Philadelphia exchange commenced trading in currency in 1982. In 1982, stock exchanges of Montreal and Philadelphia introduced standardised currency options. Thereafter, Chicago Mercantile Exchange, LIFFE of London, Sydney Futures Exchange, MATIF of Paris and some others started trading in standardised currency Options
28
The major players in the foreign exchange market are.
Discuss
Answer & Solution
Answer: Option C
Solution:
The major players in the foreign exchange market are exchange brokers. A foreign exchange broker (also known as an FX broker or a forex broker) buys and sells currencies on behalf of clients while charging a commission for the service.
29
Derivatives can be used by an exporter for managing.
Discuss
Answer & Solution
Answer: Option C
Solution:
Derivatives can be used by an exporter for managing credit risk. Credit risk is the possibility of a loss resulting from a borrower's failure to repay a loan or meet contractual obligations.
30
Derivatives are so called because
Discuss
Answer & Solution
Answer: Option B
Solution:
Derivatives are so called because they are derived from combination of different assets. A derivative is a contract between two parties which derives its value/price from an underlying asset. The most common types of derivatives are futures, options, forwards and swaps. Description: It is a financial instrument which derives its value/price from the underlying assets.