MCQ Questions International Finance and Treasury

Please refer to MCQ Questions for International Finance and Treasury provided below. These objective questions will be really useful if you are planning to appear in competitive examinations. We have provided MCQ questions for Management subject which is very important for IAS, UPSC, or civil services examinations.

International Finance and Treasury MCQ Questions with Answers

Question. Type of negotiable certificate of deposits is usually classified as           
A. primary instrument
B. bearer instrument
C. term instrument
D. interim instrument

Question. Feature of stock which allows stock holders to buy shares at price below than market price is called           
A. shares offering
B. price offering
C. rights offering
D. stock offering

Question. Expected worth is the         
A. inverse of standard deviation
B. correlation between a security
C. same as discrete probability distribution
D. weighted average of all possible outcomes

Question. Federal Reserve increases money supply by                 
A. selling treasury bills
B. buying treasury bills
C. selling Swiss bills
D. buying Swiss bills

Question. Exchange rate entail delivery of trade currency within two business days know as           
A. forward rate
B. future rate
C. spot rate
D. bid rate

Question. Buying price of stock is $35 and it canbe sold for $30 whereas dividend paid is  $6 then return on stock is 
A. 36.67%
B. 46.67%
C. 26.67%
D. 26.67%

Question. Promised payments on Eurobonds will be paid in   
A. currency of denomination
B. currency of home country
C. currency of Australia
D. currency of local market

Question. Bondholders usually accept interest payments each             
A. 1 year
B. six months
C. 2 months
D. 2 years

Question. Type of contract which involves immediate exchange of funds and assets is classified as       
A. spot contract
B. forward contract
C. future contracts
D. present contract

Question. Conversion values is divided by conversion rate received on conversion on stock to calculate                 
A. current market price
B. past market price
C. future market value
D. current stock value

Question. In borrowing and lending of federal funds, federal funds rate is result of function between           
A. assets and liability
B. cost and marketing
C. supply and demand
D. income and expense

Question. The eligibility to borrow from IDA is based on                 
A. relative poverty
B. lack of creditworthiness to borrow on market terms
C. good policy performance
D. all the above

Question. If maturity date of bond is closer than premium of bond will be           
A. relatively lower
B. relatively higher
C. quantifiable
D. not be quantifiable

Question. Call premium of bond is $630 and call price of bond is $240 then face value of bond is       
A. 2.63%
B. $870
C. $390
D. $2.63

Question. If financial intermediaries are appointed by funds suppliers then these intermediaries are classified as       
A. supplier monitor
B. funds monitor
C. delegated monitor
D. allocation monitor

Question. Single European Act created in       
A. 1970
B. 1988
C. 1977
D. 1978

Question. Type of bidding in which bids are met before allocation of competitive bidders is considered as               
A. firstly basis
B. preferential basis
C. federal basis
D. last basis

Question. Federal funds are loans borrowed and lent on           
A. single payment basis
B. monthly payment basis
C. semi-annual payment basis
D. annual payment basis

Question. The primary component of the current account is the.                 
A. balance of trade
B. balance of money market flows
C. balance of capital market flows
D. unilateral transfers

Question. Rate of return on non-callable bonds is $370 and value of issuer option is $250 then return on callable bond is                 
A. $120
B. 1.48%
C. $620
D. $1.48

Question. The system operated by the WTO is known as the   
A. multilateral trading system
B. bilateral trading system
C. ratified system
D. ungratified system

Question. The balance of payments always has a zero balance. This is caused by.           
A. the working of the foreign exchange market
B. by including errors and omissions
C. the system of double entry bookkeeping
D. by including reserves and related items

Question. The current account of balance of payments includes                 
A. Unilateral payments
B. Portfolio investments
C. Short term borrowings
D. Long term borrowings

Question. Private placement of issues is consisted as       
A. registered issue
B. unregistered issue
C. federal issue
D. negotiable issue

Question. Factors considered by rating agencies on issuing bonds are           
A. position in industry
B. overall financial strength
C. issuer
D. all of above

Question. Deposit issued by bank, usually negotiable and have specific maturity date and interest rate is classified as             
A. indirect certificate
B. direct certificate
C. negotiable certificate
D. deposit certificate

Question. Suppliers, funds consumers, foreign and government intervening intermediaries are classified as participants of               
A. financial markets
B. setting interest arte
C. setting compounding rate
D. setting savings rate

Question. International Money Market is for about               
A. 2 years
B. 3 years
C. 5 years
D. 1 years

Question. Debt which depict historical accumulated record of federal government expenditures is classified as         
A. national debt
B. international debt
C. global debt
D. contraction debt

Question. A swap that is used to evade risk of exchange rate exists because of currency mismatching is classified as 
A. floating swaps
B. fixed swaps
C. currency swaps
D. notion swaps

Question. Slightest hazardous method by which organizations carry out international trade is             
A. Licensing
B. Franchising
C. International Trade
D. The establishment of new subsidiaries

Question. Marginal income tax rate is 46.8% and before tax rate of return is 15.5% then after tax rate of return is     
A. 7.25%
B. 8.25%
C. 10.25%
D. 9.25%

Question. The external method of hedging transaction exposure does not include                 
A. Forward contact hedge
B. Money market hedge
C. Cross hedging
D. Future hedging

Question. Commercial mortgages, farm mortgages and home mortgages are categories of               
A. swapped mortgages
B. sovereign mortgages
C. secondary mortgages
D. primary mortgagees

Question. Risk which arises from insufficient capital available to balance sudden decrease in assets value is classified as           
A. insolvency risk
B. solvency risk
C. balanced risk
D. unbalanced risk

Question. Treasury bills have high liquidity because of               
A. extensive secondary markets
B. extensive primary markets
C. premium money markets
D. discounted money markets

Question. Placement of financial issue in which investment bank and municipality together finds large buyers is classified as           
A. reserve placement
B. federal placement
C. private placement
D. government placement

Question. Repurchase agreements usually called repos can be traded             
A. directly
B. with brokers or dealers
C. functional buyers
D. both a and b

Question. Inverse relationship between price change and interest rate change is represented by               
A. negative discount
B. negative duration
C. positive duration
D. positive discount

Question. Type of risk in which payments are interrupted by intervention of foreign governments is considered as   
A. channel risk
B. globalization risk
C. state risk
D. country risk

Question. How many chapters are there in The ForeignTrade (Development and Regulation  Act, 1992?             
A. 5
B. 4
C. 6
D. 7

Question. Exchange markets and over counter markets are considered as two types of           
A. floating market
B. risky market
C. secondary market
D. primary market

Question. Considering coupon rate, Brady bonds pays             
A. higher than traditional
B. lower than promised
C. higher than promise
D. none of above

Question. Liquidity status of certificate of deposit which is more negotiable is considered as             
A. certified liquidity
B. term liquidity
C. more liquid
D. less liquid

Question. For other non-price conditions, decrease in equilibrium interest rate leads to           
A. increase restrictiveness
B. decrease restrictiveness
C. zero restrictiveness
D. negative restriction

Question. Difference between net proceeds and gross proceeds is called         
A. non-participating spread
B. participating spread
C. under writer spread
D. over writer spread

Question. Example of derivative securities is                   
A. return backed security
B. mortgage backed security
C. cash flow backed security
D. interest backed security

Question. Bonds that are considered as junk bonds and termed as higher yield are classified as                 
A. expansion debentures
B. premium debentures
C. subordinated debentures
D. ordinate debentures

Question. Repurchase agreements having maturity of longer term have denominations of                 
A. $40 million
B. $10 million
C. $20 million
D. $30 million

Question. An Acquisition is                     
A. More risky than other foreign investment techniques
B. Less risky than other foreign investment techniques
C. A way to share control over foreign operations
D. A way to share risk of a new foreign investment

Question. Underwriter spread of stock is $17000 and net proceeds of stock are $24000 then gross proceeds are       
A. $41,000
B. $7,000
C. $17,000.00
D. $24,000

Question. If demand of loanable demands decrease then borrowing cost of funds is           
A. upside
B. lower
C. higher
D. zero

Question. Which of the countries did not become a member of the Economic and Monetary Union as on Jan 1 1999.         
A. Britain
B. France
C. Germany
D. Italy

Question. For a particular security transaction, agreement is classified as ’reverse repo’ with point of view of           
A. security liability
B. security buyer
C. security seller
D. security function

Question. Chief cause that market worth of organization might raise in reaction to privatization is expected             
A. improvements in financial performance
B. improvement in profits
C. improvements in exports
D. improvement in managerial efficiency

Question. Convertibility of a currency is indicated by its                   
A. Conversion at market rates
B. Conversion at market rates, but subject to quantity restriction by government
C. Conversion at market rate without any quantitative restriction by government
D. Conversion at official rate

Question. Change in interest rate measured in percentage for given interest rate change is classified as       
A. premium yield
B. elasticity
C. duration
D. maturity yield

Question. Issued bond which is considered as hybrid bond is called                    
A. non-convertible bonds
B. premium convertible bonds
C. discount convertible bonds
D. convertible bonds

Question. If 180 days T-bill have maturity of one year with value of $9250 and face value is $10000 then reported discount yield is             
A. 20.00%
B. 13.00%
C. 14.00%
D. 15.00%

Question. The apex body of the Export Promotion organizations is:             
A. EPC
B. Commodity Boards
C. FIEO
D. IIFT

Question. European Economic Community founded in                     
A. 1957
B. 1958
C. 1963
D. 1968

Question. Type of bonds which is fully backed by credit and faith of issuer is classified as             
A. general obligation tax
B. general obligation savings
C. general obligation bonds
D. general obligation notes

Question. The certificate issued for the registration under Export Promotion Council is called.       
A. Registration Cum Membership Certificate
B. Permanent Account Number
C. Importer Exporter Code
D. ITC number

Question. Capital gain is subtracted from return to stockholders to calculate                   
A. periodic dividend payments
B. constant spot rate payment
C. constant forward rate payment
D. constant future rate payment

Question. Considering yields of bonds, secured bonds as compared to unsecured bonds have             
A. higher yields
B. lower yields
C. untimed yields
D. termed yields

Question. International Monetary Fund formal existence came into being in               
A. 12-05-44
B. 27-07-44
C. 27-12-45
D. 27-09-45

Question. Markets which reallocate liquid funds in relatively fixed amounts are classified as                 
A. capital markets
B. debt markets
C. secondary markets
D. primary markets

Question. Type of exchange members who only buy and sell for their personal account are classified as               
A. non-investment traders
B. professional traders
C. commercial traders
D. investment traders

Question. Bids of bidder which tells that how much treasury bills bidder wants to buy is classified as         
A. federal acceptance bid
B. bankers
C. non-competitive bids
D. competitive bids

Question. Most flexible and liquid source of funding for savings banks is               
A. annual loan market
B. federal funds market
C. functional funding market
D. secured funding market

Question. Rate which is used in major banks in United States as a rate for industrial and commercial loans is             
A. London intra bank offered rate
B. London interbank offered rate
C. euro interbank offered rate
D. demand intra bank rate

Question. Marginal income tax rate is 28% and before tax rate of return is 14.5% then after tax rate of return is         
A. 7.44% 
B. 8.44%
C. 9.44%
D. 10.44%

Question. The apex body of the Foreign Trade is                 
A. The Central Government
B. The State Government
C. The Ministry of Commerce
D. All the above

Question. Type of Eurobonds which are convertible are considered as                 
A. related to international market
B. related to equity
C. related to common stock
D. related to national market

Question. Type of preferred stock whose dividend payments are never paid to stock holders and are not considered in in arrears is classified as           
A. non-participating preferred stock
B. participating preferred stock
C. non-cumulative preferred stock
D. cumulative preferred stock

Question. Mortgages used to purchase shopping malls and office buildings are classified as               
A. developed mortgages
B. dwelling mortgages
C. commercial mortgages
D. non-commercial mortgages

Question. In real world, all factors of production are perfectly                 
A. Mobile
B. Immobile
C. Somewhat mobile
D. All of answers are correct

Question. The total value of the products and services marketed by a nation is called.                 
A. Gross Domestic Product
B. Gross National Product
C. National Income
D. Per capita income

Question. Process of selling and buying of stocks and bonds is classified as                 
A. s-trade
B. b-trade
C. e-trade
D. stock trade

Question. Type of traders who take position in market of futures which is based on expectations of prices of underlying assets are classified as               
A. professional traders
B. non-investment traders
C. position traders
D. future market traders

Question. Banks, mutual funds and insurance companies are considered as               
A. major suppliers
B. major investors
C. major portfolio holders
D. major rates decider

Question. Institutions classified as depository ones and have loans as their major assets are classified as               
A. commercial banks
B. commercial mortgages
C. credit mortgages
D. credit derivative

Question. Markets in which bonds are traded and issued are classified as             
A. corporate markets
B. treasury markets
C. bond markets
D. municipal markets

Question. Type of bond in which coupon payment is mailed registered bondholders and owner is recorded by issuing company is classified as                 
A. unregistered bonds
B. indenture bonds
C. trustee bonds
D. registered bonds

Question. If price of municipal bonds suddenly changes because of an unexpected interest rate change then investment bank             
A. faces a high profit
B. faces a loss
C. face a inflation
D. face an index risk

Question. Eurobonds are admired because                     
A. they are less risky than traditional bonds
B. European companies are considered very stable
C. of absence of government regulation
D. they are always denominated in euro

Question. Full fledged money changers are authorized to undertake                 
A. only sale transactions
B. only purchase transactions
C. all types of foreign exchange transactions
D. purchase and sale of foreign currency notes, coins and travellers cheques

Question. Type of security backed by mortgage cash flows and are packed by financial instruments is classified as   
A. cash mortgage
B. securitized mortgage
C. financial mortgage
D. instrumental mortgage

Question. Not a profit maximizing business is                   
A. International Monetary Fund
B. International bank for Reconstruction and Development
C. International Financial Corporation
D. World Trade OrganisationA. after tax rate of return

Question. Factor proceeds are part of which section of balance of payments               
A. liabilities
B. current account
C. balance of trade
D. both a & b

Question. Major participants in forward markets are                   
A. commercial banks
B. broker deals
C. investment banks
D. all of above

Question. Yields of municipal bonds is                   
A. after tax rate of return
B. before tax rate of return
C. corporative rate of return
D. federal rate of return

Question. 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

Question. The forward market is especially wellsuited to offer hedging protection against.                 
A. translation risk exposure
B. transactions risk exposure
C. political risk exposure
D. taxation

Question. Type of voting in which owner having half voting shares can elect board of directors is called               
A. directors voting
B. half voting
C. straight voting
D. owners voting

Question. A specified country           
A. Other Country
B. Other People
C. Parent Company
D. Other Subsidiary

Question. Which of following is not a cause for global investment?                     
A. To gain access to important raw materials.
B. To produce products and/or services more efficiently than possible domestically.
C. To provide an expected risk-adjusted return in excess of that required.
D. International investments have less political risk than domestic investments.

Question. Margin which must be maintained as soon as futures contract takes place is classified as             
A. spot margin
B. maintenance margin
C. futures margin
D. forwards margin

Question. The exports made by an exporter or manufacturer on behalf of another exporters are called               
A. Registered Exporter
B. Manufacturer Exporter
C. Merchant Exporter
D. Third Party Exporter

Question. Under the interest rate option, the buyer                                        
A. Avoids unfavourable movement in interest rates
B. Gains from favorable movement in interest rates
C. Both a and b
D. Gains nothing, only the seller gains