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

31.
The external method of hedging transaction exposure does not include

A. Forward contact hedge

B. Money market hedge

C. Cross hedging

D. Future hedging

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32.
The cost of hedging through option includes

A. Option premium

B. Interest on option premium till due date of the contract

C. Both a and b

D. optimum premium and difference between option price and spot price

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33.
Foreign currency exposures can be avoided by

A. Entering into forward contracts

B. Denominating the transaction in domestic currency

C. Exposure netting

D. Maintaining foreign currency accounts

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34.
Forward contract is an agreement to buy or sell an assets on

A. Specified price

B. Specified time

C. Specified date

D. Specified volume

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35.
International Financial Corporation established in the year

A. 1948

B. 1952

C. 1962

D. 1956

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36.
For the purpose of translation exposure, historical rate is the rate prevalent on the date

A. The parent company was established

B. The foreign subsidiary was established

C. The investment in the subsidiary was made by the parent company

D. The asset was acquired or the liability was incurred

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37.
This is not established method of translation

A. Current rate method

B. Monetary/Non-monetary method

C. Temporary method

D. Current/Non-current method

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38.
Two tier exchange rate system is a form of

A. Different exchange rate

B. Fixed rate

C. Multiple exchange rate

D. Flexible rate

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39.
Which of the following is not a reason for international investment?

A. To provide an expected risk-adjusted return in excess of that required

B. To gain access to important raw materials

C. To produce products and/or services more efficiently than possible domestically

D. International investments have less political risk than domestic investments

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40.
The __________ is especially well suited to offer hedging protection against transactions risk exposure

A. forward market

B. spot market

C. transactions market

D. inflation-rate market

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

31. The external method of hedging transaction exposure does not include

Answer & Solution

32. The cost of hedging through option includes

Answer & Solution

33. Foreign currency exposures can be avoided by

Answer & Solution

34. Forward contract is an agreement to buy or sell an assets on

Answer & Solution

35. International Financial Corporation established in the year

Answer & Solution

36. For the purpose of translation exposure, historical rate is the rate prevalent on the date

Answer & Solution

37. This is not established method of translation

Answer & Solution

38. Two tier exchange rate system is a form of

Answer & Solution

39. Which of the following is not a reason for international investment?

Answer & Solution

40. The __________ is especially well suited to offer hedging protection against transactions risk exposure

Answer & Solution

Read More Section(International Finance and Treasury)

31.
The external method of hedging transaction exposure does not include

32.
The cost of hedging through option includes

33.
Foreign currency exposures can be avoided by

34.
Forward contract is an agreement to buy or sell an assets on

35.
International Financial Corporation established in the year

36.
For the purpose of translation exposure, historical rate is the rate prevalent on the date

37.
This is not established method of translation

38.
Two tier exchange rate system is a form of

39.
Which of the following is not a reason for international investment?

40.
The __________ is especially well suited to offer hedging protection against transactions risk exposure