ExamVeda
Login
Home

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-1 section-3

Each section contains 100 MCQs on International Finance and Treasury .
1
Technique by which companies reduce cost of transaction services and results in increased efficiency is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Technique by which companies reduce cost of transaction services and results in increased efficiency is classified as economies of scale. Economies of scale are cost reductions that occur when companies increase production. The fixed costs, like administration, are spread over more units of production. Sometimes the company can negotiate to lower its variable costs as well.
2
If financial intermediaries are appointed by funds suppliers then these intermediaries are classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
If financial intermediaries are appointed by funds suppliers then these intermediaries are classified as delegated monitor. The delegated monitor is a financial intermediary because it borrows from small investors (depositors), using unmonitored debt (deposits) to lend to borrowers (whose loans it monitors).
3
Risk which arises all activities from contingent liabilities and assets is considered as
Discuss
Answer & Solution
Answer: Option A
Solution:
Risk which arises all activities from contingent liabilities and assets is considered as off balance sheet risk. Off balance sheet refers to items that are effectively assets or liabilities of a company but do not appear on the company's balance sheet.
4
Market value size of outstanding instruments of capital markets depends on factors
Discuss
Answer & Solution
Answer: Option D
Solution:
Market value size of outstanding instruments of capital markets depends on factors number of issued securities and market prices of securities.
5
When maturities of liabilities and assets are mismatched and risk incurred by financial intermediaries then this risk is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
When maturities of liabilities and assets are mismatched and risk incurred by financial intermediaries then this risk is classified as interest rate risk. The interest rate risk, or market risk, refers to the chance that investments in bonds also known as fixed-income securities will suffer as the result of unexpected interest rate changes.
6
Depository institutions includes
Discuss
Answer & Solution
Answer: Option B
Solution:
Depository institutions includes commercial banks and thrifts. A depository is a facility such as a building, office, or warehouse in which something is deposited for storage or safeguarding. It can refer to an organization, bank, or institution that holds securities and assists in the trading of securities.
7
Major liabilities of commercial banks are
Discuss
Answer & Solution
Answer: Option B
Solution:
Major liabilities of commercial banks are deposits. A deposit is a financial term that has multiple definitions.On the one hand, a deposit is a transaction involving a transfer of funds to another party for safekeeping. On the other, a deposit also refers to a portion of funds used as security or collateral for the delivery of a good.
8
Money market where securities are issued by governments to obtain funds for short term is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Money market where securities are issued by governments to obtain funds for short term is classified as money market instruments. There are several money market instruments in most Western countries, including treasury bills, commercial paper, bankers' acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage- and asset-backed securities.
9
Federal funds, bankers acceptance, commercial paper and repurchase agreements are classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Federal funds, bankers acceptance, commercial paper and repurchase agreements are classified as money market instruments. There are several money market instruments in most Western countries, including treasury bills, commercial paper, bankers' acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage- and asset-backed securities.
10
In financial transactions, risk that there will be no profit in selling of this asset is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
In financial transactions, risk that there will be no profit in selling of this asset is classified as price risk. Price risk is the potential for the decline in the price of an asset or security relative to the rest of the market. It excludes market risk, or the potential for an entire market to go down in value. As such, price risk is the component of investing risk that can be reduced with diversification.