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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-5

Each section contains 100 MCQs on International Finance and Treasury .
81
Suppliers, funds consumers, foreign and government intervening intermediaries are classified as participants of
Discuss
Answer & Solution
Answer: Option A
Solution:
Suppliers, funds consumers, foreign and government intervening intermediaries are classified as participants of financial markets. Financial markets refer broadly to any marketplace where the trading of securities occurs, including the stock market, bond market, forex market, and derivatives market, among others. Financial markets are vital to the smooth operation of capitalist economies.
82
According to loanable funding theory, net suppliers of funds are
Discuss
Answer & Solution
Answer: Option D
Solution:
According to loanable funding theory, net suppliers of funds are households. According to this approach, the interest rate is determined by the demand for and supply of loanable funds. The term loanable funds includes all forms of credit, such as loans, bonds, or savings deposits.
83
Funds provided by suppliers of funds in financial markets are classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Funds provided by suppliers of funds in financial markets are classified as supply of loan-able funds. The supply of loanable funds is based on savings. The demand for loanable funds is based on borrowing. The interaction between the supply of savings and the demand for loans determines the real interest rate and how much is loaned out.
84
If there is improve in economic condition in foreign countries, local community of investors start
Discuss
Answer & Solution
Answer: Option A
Solution:
If there is improve in economic condition in foreign countries, local community of investors start investing abroad.
85
Participants of financial system reduce demand for their funds if economic growth in
Discuss
Answer & Solution
Answer: Option A
Solution:
Participants of financial system reduce demand for their funds if economic growth in domestic market is stagnant. A financial system is the set of global, regional, or firm-specific institutions and practices used to facilitate the exchange of funds. Financial systems can be organized using market principles, central planning, or a hybrid of both.
86
Equilibrium interest rate increases and economic conditions decreases then supply curve must shift to
Discuss
Answer & Solution
Answer: Option C
Solution:
Equilibrium interest rate increases and economic conditions decreases then supply curve must shift to up and to left. The equilibrium interest rate is the rate at which the quantity of money demanded is equal to the quantity of money supplied. The Federal Reserve can alter the equilibrium interest rate by adjusting the supply of money. The demand for money and supply of money can be graphed to determine the equilibrium interest rate.
87
If demand of loanable demands increases then borrowing cost of funds is
Discuss
Answer & Solution
Answer: Option A
Solution:
If demand of loanable demands increases then borrowing cost of funds is higher. The demand for loanable funds represents the behavior of borrowers and the quantity of loans demanded. The lower the interest rate, the less expensive it is to borrow.
88
In financial markets, decrease in investment results in
Discuss
Answer & Solution
Answer: Option A
Solution:
In financial markets, decrease in investment results in increase in interest rate. An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed.
89
Value which converts series of equal payments in to value received at beginning of investment is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Value which converts series of equal payments in to value received at beginning of investment is classified as present value of annuity. An annuity is a financial product that pays out a fixed stream of payments to an individual. Annuities exist first in an accumulation phase, whereby investors fund the product with either a lump-sum or periodic payments.
90
Curve representing demand of funds shifts to left if economic growth in
Discuss
Answer & Solution
Answer: Option C
Solution:
Curve representing demand of funds shifts to left if economic growth in domestic market is stagnant. The demand curve is a representation of the correlation between the price of a good or service and the amount demanded for a period of time.