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21
When the two countries are having the gold standard, their currency units are either made of gold specified purity and weight or freely convertible into gold of given purity at fixed rate, this theory known as
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Answer: Option B
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22
Which of the following transactions take place in the foreign exchange market?
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Answer: Option D
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23
More instability in currency is called as
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Answer: Option C
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24
Which of the following statement is true?
Statement I Cross rate represents when one unit of foreign currency is represented in the terms of another foreign currency.
Statement II Cross rates are determined only with the help of domestic currency and the foreign currency.
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Answer: Option C
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25
Which of the following are international financial considerations are faced by both small and large MNEs?
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Answer: Option D
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26
Match the following.
List-I List-II
a. BID-ASK SPREAD 1. Selling price of dealer
b. BID 2. Buying price of dealer
c. ASK 3. Banks profit
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Answer: Option D
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27
A simultaneous purchase and sale of foreign exchange for two different dates
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Answer: Option B
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28
International banking dealing with non-residents only and not in the currency of the country where they are located is called
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Answer: Option B
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29
If music players made in India are imported into the United States, the Indian manufacturer is paid with
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Answer: Option C
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30
The following two statements relate to financial derivatives. Choose the correct answer for statements being correct or incorrect.
Statement I When an option is allowed to be exercised only on the maturity date, it is called an American option.
Statement II If the option holder does not lose or gain whether he exercise his option or buys or sells the asset form the market, the option is said to be at-the-money.
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Answer: Option B
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