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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-9 section-1

Each section contains 100 MCQs on International Finance and Treasury .
81
Convertibility of a currency is indicated by its
Discuss
Answer & Solution
Answer: Option C
Solution:
Convertibility of a currency is indicated by its conversion at market rate without any quantitative restriction by government. Currency convertibility is important for international commerce as globally sourced goods must be paid for in an agreed upon currency that may not be the buyer's domestic currency.
82
The role if IMF does not include
Discuss
Answer & Solution
Answer: Option B
Solution:
The role if IMF does not include lending to socially oriented projects. The IMF's fundamental mission is to help ensure stability in the international system. It does so in three ways: keeping track of the global economy and the economies of member countries; lending to countries with balance of payments difficulties; and giving practical help to members.
83
IMF augments its resources by borrowing under
Discuss
Answer & Solution
Answer: Option D
Solution:
IMF augments its resources by borrowing under General arrangements to borrow, New arrangements to borrow and Trust funds.
84
What is the role of IMF
Discuss
Answer & Solution
Answer: Option C
Solution:
The role of IMF is that it observes world exchange rates, balance of payments and multilateral payments.
85
The abbreviations SDR stands for
Discuss
Answer & Solution
Answer: Option A
Solution:
The abbreviations SDR stands for Special Drawing Rights. Special drawing rights (SDR) refer to an international type of monetary reserve currency created by the International Monetary Fund (IMF) in 1969 that operates as a supplement to the existing money reserves of member countries.
86
The term World Bank refers to
Discuss
Answer & Solution
Answer: Option C
Solution:
The term World Bank refers to both IBRD and IDA. Both IBRD loans and IDA credits support investment projects and programs designed to meet priority economic and social needs.
87
The eligibility to borrow from IDA is based on
Discuss
Answer & Solution
Answer: Option D
Solution:
The eligibility to borrow from IDA is based on relative poverty, lack of creditworthiness to borrow on market terms and good policy performance.
88
Financial products of IFC does not include
Discuss
Answer & Solution
Answer: Option D
Solution:
Financial products of IFC does not include none of the above.
89
MIGA stands for
Discuss
Answer & Solution
Answer: Option A
Solution:
MIGA stands for Multilateral Investment Guarantee Agency. The Multilateral Investment Guarantee Agency (MIGA) is an international financial institution which offers political risk insurance and credit enhancement guarantees.
90
The activities of ADB include
Discuss
Answer & Solution
Answer: Option C
Solution:
The activities of ADB include project financing and guaranteeing loans. ADB offers the public sector different types of financial products, which includes loans, grants, technical assistance, guarantees, and debt management products.