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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-8

Each section contains 100 MCQs on International Finance and Treasury .
51
Mainly general type of Direct Foreign Investment (DFI) is
Discuss
Answer & Solution
Answer: Option B
Solution:
Mainly general type of Direct Foreign Investment (DFI) is the establishment of new subsidiaries. Foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country.
52
Worldwide trade is
Discuss
Answer & Solution
Answer: Option D
Solution:
Worldwide trade is Buying goods from abroad, Selling good to abroad and Paying Foreign Currency.
53
An Acquisition is
Discuss
Answer & Solution
Answer: Option A
Solution:
An Acquisition is more risky than other foreign investment techniques. An acquisition is when one company purchases most or all of another company's shares to gain control of that company. Purchasing more than 50% of a target firm's stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company's shareholders.
54
Choice of financial managing can be split down into choices of
Discuss
Answer & Solution
Answer: Option B
Solution:
Choice of financial managing can be split down into choices of Investment, financing, and asset management.
55
Agency cost can be decreased by
Discuss
Answer & Solution
Answer: Option C
Solution:
Agency cost can be decreased by Centralized Structure. Centralized organization can be defined as a hierarchy decision-making structure where all decisions and processes are handled strictly at the top or the executive level.
56
Which of following is not a type of direct foreign investment?
Discuss
Answer & Solution
Answer: Option B
Solution:
International trade is not a type of direct foreign investment. International Trade refers to the exchange of products and services from one country to another. In other words, imports and exports.
57
Comparative edge is specializing actions in which they are
Discuss
Answer & Solution
Answer: Option A
Solution:
Comparative edge is specializing actions in which they are more efficient. Comparative advantage is an economic term that refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners. A comparative advantage gives a company the ability to sell goods and services at a lower price than its competitors and realize stronger sales margins.
58
Expected worth is the
Discuss
Answer & Solution
Answer: Option D
Solution:
Expected worth is the weighted average of all possible outcomes. The expected value (EV) is an anticipated value for an investment at some point in the future. In statistics and probability analysis, the expected value is calculated by multiplying each of the possible outcomes by the likelihood each outcome will occur and then summing all of those values.
59
Liquidity risk is:
Discuss
Answer & Solution
Answer: Option C
Solution:
Liquidity risk is risk associated with secondary market transactions. Liquidity is the ability of a firm, company, or even an individual to pay its debts without suffering catastrophic losses. Conversely, liquidity risk stems from the lack of marketability of an investment that can't be bought or sold quickly enough to prevent or minimize a loss.
60
Bondholders usually accept interest payments each
Discuss
Answer & Solution
Answer: Option B
Solution:
Bondholders usually accept interest payments each six months. A bondholder is an investor or owner of debt securities that are typically issued by corporations and governments. Bondholders are essentially lending money to the bond issuers. Bondholders receive their principal back when the bonds mature and periodic interest payments for most bonds.