INTERNATIONAL FINANCE
MCQS - MARCH - 2014
MID SEMESTER EXAMINATION
SEMESTER - 6
(1) In forign exchange settlement normally the bills of exchange is supported by ______
(a) Importer's License
(b) Traveler's Cheque
(c) letter of credit
(d) Affidavit
(2) Demand curve for foreign exchange would shift downward if, _______
(A)Important propensity in country has gone up.
(b) Country adopts "Inward looking" strategy.
(C) Import demand for foreign capital has increased.
(D) All of the above.
(3) Balance in BOP is a _______ concept.
(A) Deficit
(B) Surplus
(C) Equilibrium
(D) Accounting
(4) The Accommodating transaction are also know as _______ transaction.
(A) Above the line
(B) Below the line
(C) On the line
(D) Between the line
(5) Devaluation may not be advisable for country if,
(A) Country has a large column of foreign debt.
(B) Country's imports are inelastic.
(C) Country is following a vigorously expansionary monetary policy.
(D) All of the above.
(6) Under automatic adjustment system when home country contracts moneys supply it would lead to
(A) Increase in interest rates and decrease in income levels.
(B) Increase in income levels and increase in interest rates.
(C) Increase in gold stock.
(D) All of the above.
(7) Effect of devaluation on BOP will be favorable if after devaluation the price level of the country _______
(A) Remains constant
(B) increases
(C) Decreases
(D) Both (a) or (b)
(8) PPP Theory implies parity of two currencies which are on _______ .
(A) Gold standard
(B) Silver standard
(C) Paper standard
(D) All of the above
(9) Long term capital account comprises _______.
(A) Private direct investment
(B) Private portfolio investment
(C) Government loan to foreign govt.
(D) All of the above
(10) Under Bretton woods system the exchange rate is also known as ______.
(A) Parrotin the cage
(B) Sank in the tunnel
(C) Bird in the best
(D) Dog in kennel.
For More Detail Contact Us And Follow On Study For Buddies
Thank You
No comments:
Post a Comment