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

A. Cash or collateral provided by a customer to a broker to protect the broker from loss on a contract

B. Cash or collateral provided by a broker to a customer to protect the customer from loss on contract

C. A broker's request for more collateral to bring a customer's margin requirement to a premium margin level

D. A customer's request for more collateral to bring a broker's margin requirement to a minimum standard level

A. a-2, b-1, c-3, d-4

B. a-3, b-1, c-2, d-4

C. a-2, b-3, c-1, d-4

D. a-3, b-4, c-1, d-2

A. The value of all currencies fall relative to gold

B. The value of all currencies rise relative to gold

C. The value of one currency rises relative to another currency

D. The value of one currency falls relative to another currency

A. 1 years

B. 2 years

C. 5 years

D. 10 years

A. Currency hedging

B. Currency speculation

C. Currency conversion

D. All of the above

A. Fisher effect

B. Leontief paradox

C. combined equilibrium theory

D. purchasing power parity

A. $ 1,25,000

B. $ 2,50,000

C. $ 5,00,000

D. $ 6,25,000

A. ADR and GDRs

B. international credit market

C. international money market

D. all of the above

A. seller

B. buyer

C. hedger

D. speculator

A. the home currency will appreciate if the current home inflation rate exceeds the current foreign inflation rate

B. the home currency will depreciate if the current home interest rate exceeds the current foreign interest rate

C. the home currency will depreciate if the current home inflation rate exceeds the current foreign inflation rate

D. the home currency will depreciate if the current home inflation rate exceeds the current foreign interest rate