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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-2

Each section contains 100 MCQs on International Finance and Treasury .
51
Currency in which Eurobonds are denominated is decided by
Discuss
Answer & Solution
Answer: Option B
Solution:
Currency in which Eurobonds are denominated is decided by issuers of bonds. Eurobonds are issued and traded internationally and are often not denominated in a currency native to the country of the issuer.
52
Face value of bond is $685 and call price of bond is $378 then value of call premium is
Discuss
Answer & Solution
Answer: Option A
Solution:
Value of call premium = Face value of bond - Call price of bond
= $685 - $378 = $307.
53
Call premium of bond is $760 and call price of bond is $560 then face value of bond is
Discuss
Answer & Solution
Answer: Option A
Solution:
Face value of bond = Call premium of bond - Call price of bond
= $760 - $560 = $200
54
Depository institutions such as thrifts includes
Discuss
Answer & Solution
Answer: Option D
Solution:
Depository institutions such as thrifts includes savings associations, savings banks and credit unions. A thrift institution is a financial institution that obtains the majority of its funds from the savings of the public. The term can include several cooperative banking models; Savings and loan association. Mutual savings bank.
55
Money market where debt and stocks are traded and maturity period is more than a year is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Money market where debt and stocks are traded and maturity period is more than a year is classified as capital markets. Capital markets refer to the places where savings and investments are moved between suppliers of capital and those who are in need of capital. Capital markets consist of the primary market, where new securities are issued and sold, and the secondary market, where already-issued securities are traded between investors.
56
Example of derivative securities includes
Discuss
Answer & Solution
Answer: Option D
Solution:
Example of derivative securities includes swap contract, option contract and futures contract. A derivative is an instrument whose value is derived from the value of one or more underlying, which can be commodities, precious metals, currency, bonds, stocks, stocks indices, etc.
57
In foreign financial markets, growth is represented by factors such as
Discuss
Answer & Solution
Answer: Option D
Solution:
In foreign financial markets, growth is represented by factors such as savings in foreign countries, investment opportunities and accessible information.
58
Authority which intervenes directly or indirectly in foreign exchange markets by altering interest rates is considered as
Discuss
Answer & Solution
Answer: Option C
Solution:
Authority which intervenes directly or indirectly in foreign exchange markets by altering interest rates is considered as central government. The central government oversees finance, commerce, national defense, foreign affairs, and all laws 'necessary and proper'.
59
Services provided by financial institutions as providing financing to any specific sector of economy such as real estate business are classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Services provided by financial institutions as providing financing to any specific sector of economy such as real estate business are classified as credit allocation. The financing (credit) which a bank or financial institution (FI) provides for particular sectors of the economy, such as small businesses, farming, services, residential real estate, etc.
60
Risk arises when technology system may got malfunction is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Risk arises when technology system may got malfunction is classified as operational risk. 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.