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

Time draft and Sight draft is not an example of an international trade draft. A sight draft is a type of bill of exchange, in which the exporter holds the title to the transported goods until the importer receives and pays for them. Sight drafts are used with both air shipments and ocean shipments for financing transactions of goods in international trade.

Reliance is the first Indian company raised the fund by issuing Bond in US dollar in United States. It is first corporation in Asia to issue 50- and 100-year bonds in the United States.

Purchasing-power parity (PPP) refers to the concept that the same goods should sell for the same price across countries after exchange rates are taken into account. Purchasing power parity (PPP) is an economic theory that compares different countries' currencies through a "basket of goods" approach.

A group of European countries have formed a union and created a common currency known as the Euro. The European Union (EU) is a group of 28 countries that operates as a cohesive economic and political block. Nineteen of the countries use the euro as their official currency.

The forward exchange rate is the rate today for exchanging one currency for another at a specific future date. Forward exchange rate is the exchange rate at which a party is willing to enter into a contract to receive or deliver a currency at some future date.

The spot exchange rate is the rate today for exchanging one currency for another for immediate delivery. The spot exchange rate is the amount one currency will trade for another today. In other words, it's the price a person would have to pay in one currency to buy another currency today. You could also think of it as today's rate that one currency can be traded with another.

The International Development Association of the World Bank Group deals with matters related to the development of the poorest countries in the world. The International Development Association (IDA) is the part of the World Bank that helps the world’s poorest countries. Overseen by 173 shareholder nations, IDA aims to reduce poverty by providing loans (called “credits”) and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.

In India, the exchange rate system is managed floating (from 1994 onwards) and hence the relevant currency movements are appreciation and depreciation. Here, the exchange rate is determined in the open market through the pressure of buying and selling of foreign currencies.

The index of Financial Inclusion, Indian Council for Research on International Economic Relations (ICRIER) has been launched for the first time in 2008. The IFI developed here incorporates information on various dimensions of an inclusive financial system and it is easy to compute. This study is part of a major research project on “Financial Inclusion” under the auspices of the Financial Sector Research Programme (FSRP) at ICRIER.

Cash is a highly liquid asset followed by the banking accounts, checkable account, short-term promissory notes, treasury bills and other government bonds.