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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-7 section-8

Each section contains 100 MCQs on International Finance and Treasury .
61
A corporate bond is a corporation's write undertaking that it will refund a specific amount of money plus
Discuss
Answer & Solution
Answer: Option B
Solution:
A corporate bond is a corporation's write undertaking that it will refund a specific amount of money plus interest. A corporate bond is a debt security issued by a corporation and sold to investors. The backing for the bond is usually the payment ability of the company, which is typically money to be earned from future operations. In some cases, the company's physical assets may be used as collateral for bonds.
62
A price weighted index is an arithmetic mean of
Discuss
Answer & Solution
Answer: Option B
Solution:
A price weighted index is an arithmetic mean of current prices. A price-weighted index is a stock index in which each stock influences the index in proportion to its price per share. Adding the price of each stock in the index and dividing by the total number of stocks determines the index's value.
63
Political constancy is chief aspect concerning
Discuss
Answer & Solution
Answer: Option D
Solution:
Political constancy is chief aspect concerning country risk. Country risk is the risk that a foreign government will default on its bonds or other financial commitments. Country risk also refers to the broader notion of the degree to which political and economic unrest affect the securities of issuers doing business in a particular country.
64
Capital Market Line is firstly initiated by
Discuss
Answer & Solution
Answer: Option D
Solution:
Capital Market Line is firstly initiated by William Sharpe. The capital market line (CML) represents portfolios that optimally combine risk and return. Capital asset pricing model (CAPM), depicts the trade-off between risk and return for efficient portfolios.
65
Most favourable portfolio is proficient portfolio with the
Discuss
Answer & Solution
Answer: Option C
Solution:
Most favourable portfolio is proficient portfolio with the highest utility. A portfolio investment is a hands-off or passive investment of securities in a portfolio, and it is made with the expectation of earning a return.
66
Ambiguity introduced by way by which organization finances its investments is
Discuss
Answer & Solution
Answer: Option C
Solution:
Ambiguity introduced by way by which organization finances its investments is financial risk. Financial risk is a term that can apply to businesses, government entities, the financial market as a whole, and the individual. This risk is the danger or possibility that shareholders, investors, or other financial stakeholders will lose money.
67
If generally interest rates in nation increase, a corporate bond with a fixed interest rate will usually
Discuss
Answer & Solution
Answer: Option C
Solution:
If generally interest rates in nation increase, a corporate bond with a fixed interest rate will usually decrease in value. A fixed-rate bond is a bond that pays the same amount of interest for its entire term.
68
A main difference among real and nominal interest proceeds is that
Discuss
Answer & Solution
Answer: Option A
Solution:
A main difference among real and nominal interest proceeds is that real returns adjust for inflation and nominal returns do not. A real rate of return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external factors. Adjusting the nominal return to compensate for factors such as inflation allows you to determine how much of your nominal return is real return.
69
Financial hazard is most related with
Discuss
Answer & Solution
Answer: Option B
Solution:
Financial hazard is most related with use of debt financing by corporations. Hazard risks arise from property, liability, or personnel loss exposures and are generally the subject of insurance. Financial risks arise from the effect of market forces on financial assets or liabilities and include market risk, credit risk, liquidity risk, and price risk.
70
Standard deviation determine
Discuss
Answer & Solution
Answer: Option C
Solution:
Standard deviation determine total risk of security. Standard deviation is a statistical measurement in finance that, when applied to the annual rate of return of an investment, sheds light on the historical volatility of that investment.