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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-5 section-8

Each section contains 100 MCQs on International Finance and Treasury .
41
Slightest hazardous method by which organizations carry out international trade is
Discuss
Answer & Solution
Answer: Option C
Solution:
Slightest hazardous method by which organizations carry out international trade is International Trade. International trade is the exchange of goods and services between countries. Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries, or which would be more expensive domestically.
42
One of generally prevalent aspects conflicting with recognition of ambition of an MNC is existence of
Discuss
Answer & Solution
Answer: Option A
Solution:
One of generally prevalent aspects conflicting with recognition of ambition of an MNC is existence of Agency problem. The agency problem is a conflict of interest inherent in any relationship where one party is expected to act in another's best interests.
43
Agency problem is between
Discuss
Answer & Solution
Answer: Option C
Solution:
Agency problem is between manager and shareholders. The agency problem is a conflict of interest inherent in any relationship where one party is expected to act in another's best interests. In corporate finance, the agency problem usually refers to a conflict of interest between a company's management and the company's stockholders.
44
Most unsafe mode by which firms perform worldwide business is
Discuss
Answer & Solution
Answer: Option D
Solution:
Most unsafe mode by which firms perform worldwide business is the establishment of new subsidiaries. Firms can also penetrate foreign markets by establishing new operations in foreign countries to produce and sell their products.
45
Which of following is not a cause for global investment?
Discuss
Answer & Solution
Answer: Option D
Solution:
International investments have less political risk than domestic investments is not a cause for global investment. International investing involves selecting global investment instruments as part of a geographically diversified portfolio. People often invest internationally to broaden diversification and spread investment risk among foreign markets and companies.
46
Greater exposure bigger the
Discuss
Answer & Solution
Answer: Option D
Solution:
Greater exposure bigger the risk. Gross exposure is a measure that indicates total exposure to financial markets, thus providing an insight into the amount at risk that investors are taking on. The higher the gross exposure, the bigger the potential loss (or gain).
47
Below Product Cycle Theory, overseas demand can be primarily contented by
Discuss
Answer & Solution
Answer: Option A
Solution:
Below Product Cycle Theory, overseas demand can be primarily contented by exporting. The Product Life Cycle Theory is an economic theory that was developed by Raymond Vernon in response to the failure of the Heckscher-Ohlin model to explain the observed pattern of international trade.
48
Features of international business that a organization may be exposed to
Discuss
Answer & Solution
Answer: Option D
Solution:
Features of international business that a organization may be exposed to Exchange rates, Foreign economic conditions and Political risk.
49
Example of a market deficiency is
Discuss
Answer & Solution
Answer: Option D
Solution:
Example of a market deficiency is Restrictions on transfer of labour, Restrictions on transfer of funds and Restrictions on capital flows during currency crisis. Market efficiency refers to the degree to which market prices reflect all available, relevant information.
50
Joint venture is
Discuss
Answer & Solution
Answer: Option B
Solution:
Joint venture is jointly owned by two or more firms. A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.