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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-6 section-1

Each section contains 100 MCQs on International Finance and Treasury .
51
The price at which a market maker is prepared to buy a currency or borrow money is termed as
Discuss
Answer & Solution
Answer: Option B
Solution:
The price at which a market maker is prepared to buy a currency or borrow money is termed as bid rate. The bid rate is thus the rate at which the dealer is willing to buy the base currency and the ask rate is the one at which the dealer is willing to sell the base currency. The difference between the ask rate and the bid rate is called the bid-ask spread and is the profit of the dealer.
52
A deposit or borrowing domiciled outside the home country of the currency is called as
Discuss
Answer & Solution
Answer: Option C
Solution:
A deposit or borrowing domiciled outside the home country of the currency is called as euro currency. The euro is the common currency for 19 countries in the eurozone. The eurozone crisis almost ended it.
53
The system operated by the WTO is known as the
Discuss
Answer & Solution
Answer: Option A
Solution:
The system operated by the WTO is known as the multilateral trading system. MTS (Multilateral Trading System) The system which allows large numbers of countries to agree to trade with each other. The World Trade Organisation (WTO) is part of this system.
54
The price at which a market maker is prepared to sell a currency or lend money
Discuss
Answer & Solution
Answer: Option D
Solution:
The price at which a market maker is prepared to sell a currency or lend money is offer rate. The offer price is the rate at which the market maker will sell the base currency to a customer/market user.
55
Bretton woods agreement arrived at in
Discuss
Answer & Solution
Answer: Option A
Solution:
Bretton woods agreement arrived at in 01-07-94. The Bretton Woods Agreement was negotiated in July 1944 to establish a new international monetary system, the Bretton Woods System. The Agreement was developed by delegates from 44 countries at the United Nations Monetary and Financial Conference held in Bretton Woods, New Hampshire.
56
A contract that gives the buyer the right to buy commodity or a foreign currency from the seller at a fixed price is called as
Discuss
Answer & Solution
Answer: Option B
Solution:
A contract that gives the buyer the right to buy commodity or a foreign currency from the seller at a fixed price is called as call option. Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period.
57
SIBOR refers to
Discuss
Answer & Solution
Answer: Option D
Solution:
SIBOR refers to Singapore interbank offered rate. It is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the Singapore wholesale money market (or interbank market).
58
The market where long term securities (shares, bonds, etc. are bought and sold is called as
Discuss
Answer & Solution
Answer: Option D
Solution:
The market where long term securities (shares, bonds, etc. are bought and sold is called as secondary market. The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the "stock market," though stocks are also sold on the primary market when they are first issued.
59
A bank located usually in another country that provides service for another bank is
Discuss
Answer & Solution
Answer: Option C
Solution:
A bank located usually in another country that provides service for another bank is Correspondent bank. A correspondent bank is a bank that provides services on behalf of another, equal or unequal, financial institution. It can facilitate wire transfers, conduct business transactions, accept deposits, and gather documents on behalf of another financial institution.
60
The maximum amount that an Indian company can issue as ADR/GDR in a year is
Discuss
Answer & Solution
Answer: Option D
Solution:
The maximum amount that an Indian company can issue as ADR/GDR in a year is No monetary ceiling. The Monetary Ceiling is the maximum amount for which a Member can be held liable (ie. the cap) where a Court determines that the Member is compliant with all relevant obligations.