International Finance and Treasury MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9

1.
Liquidity premium theory, unbiased expectations theory and market segmentation theory are theories to describe

A. term structure of segmentation

B. term structure of interest rate

C. term structure of premium

D. term structure of inflation

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2.
When interest rate is lower than equilibrium rate of borrowing loanable funds then financial system has

A. surplus of funds

B. deficit of funds

C. short-term funds

D. long-term funds

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3.
Shift of demand curve to down and to left then there must be

A. support from World Bank

B. decreases in funds traded

C. increase in funds traded

D. rise of international funds

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4.
Formula of effective annual return is written as

A. (1+r) c - 1

B. (2+r) c - 2

C. (3+r) c - 3

D. (1+r) c - 5

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5.
If equilibrium interest rate increases and curve of funding supplied shifts to left then impact on spending is

A. increase in near term

B. decrease in near term

C. increase in long term

D. decrease in long term

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6.
Monetary expansion increases and there is decrease in equilibrium interest rate then supply curve of funds must shift

A. up and to left

B. up and to right

C. down and to left

D. down and to right

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7.
If demand of loanable demands decrease then borrowing cost of funds is

A. upside

B. lower

C. higher

D. zero

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8.
To create situation with no shortage of funds, relationship between funds supplied and funds demanded must have

A. Two way relationship

B. One way relationship

C. direct relationship

D. inverse relationship

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9.
Funds demand which is pushed by users of funds in financial markets are classified as

A. supply of loan-able funds

B. demand of loan-able funds

C. compounded funds

D. savings funds

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10.
If equilibrium interest rate increases with respect to increase in interest rate, then movement along supply of funds curve is

A. shift left

B. shift right

C. upside movement

D. downside movement

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International Finance and Treasury MCQ Questions and Solutions with Explanations | Management

1. Liquidity premium theory, unbiased expectations theory and market segmentation theory are theories to describe

Answer & Solution

2. When interest rate is lower than equilibrium rate of borrowing loanable funds then financial system has

Answer & Solution

3. Shift of demand curve to down and to left then there must be

Answer & Solution

4. Formula of effective annual return is written as

Answer & Solution

5. If equilibrium interest rate increases and curve of funding supplied shifts to left then impact on spending is

Answer & Solution

6. Monetary expansion increases and there is decrease in equilibrium interest rate then supply curve of funds must shift

Answer & Solution

7. If demand of loanable demands decrease then borrowing cost of funds is

Answer & Solution

8. To create situation with no shortage of funds, relationship between funds supplied and funds demanded must have

Answer & Solution

9. Funds demand which is pushed by users of funds in financial markets are classified as

Answer & Solution

10. If equilibrium interest rate increases with respect to increase in interest rate, then movement along supply of funds curve is

Answer & Solution

Read More Section(International Finance and Treasury)

1.
Liquidity premium theory, unbiased expectations theory and market segmentation theory are theories to describe

2.
When interest rate is lower than equilibrium rate of borrowing loanable funds then financial system has

3.
Shift of demand curve to down and to left then there must be

4.
Formula of effective annual return is written as

5.
If equilibrium interest rate increases and curve of funding supplied shifts to left then impact on spending is

6.
Monetary expansion increases and there is decrease in equilibrium interest rate then supply curve of funds must shift

7.
If demand of loanable demands decrease then borrowing cost of funds is

8.
To create situation with no shortage of funds, relationship between funds supplied and funds demanded must have

9.
Funds demand which is pushed by users of funds in financial markets are classified as

10.
If equilibrium interest rate increases with respect to increase in interest rate, then movement along supply of funds curve is