INTERNATIONAL FINANCE (IF) MCQS

T.Y. B.COM

SEMESTER - IV

INTERNATIONAL FINANCE

(IF)

MCQS = JANUARY - 2010

(1) The equilibrium exchange rate in mint parity theory fluctuates between

a) Metallic export and metallic import point 

b) Volume of export and volume of import

c) Difference in tax structure 

d) None of the above

(2) The absolute purchasing power parity theory is rejected on the ground that the relative price structure between two countries cannot be identical on account of

a) Difference in qualities of goods and services

b) Difference in tariff policies

c) Difference in tax structure

d) All of the above

(3) Tariffs are most common instruments of

a) Commercial policy of government 

b) Menetary policy of government

c) Fiscal policy of government

d) None of the above

(4) Imposition of tariffs raises

a) Prices of exported goods

b) Prices of imported goods

c) Prices of exported and imported goods 

d) Non of the above

(5) Foreign exchange refers to

a) Exchange of money or credit internationally

b) Exchange of gains

c) Exchange of gold between two countries

d) None of the above

(6) The supply curve of foreign exchange for the nation's depends upon

a) The foreign demand curve for the nation's exports

b) The nation's supply curve of imports

c) The nation's demand curve for imports

d) The foreign supply curve of the nation's imports

(7) Foreign bill of exchange, normally supported by

a) A letter of credit

b) Banknote

c) foreign goods and services

d) None of the above

(8) The imposition of an import tariff by nation will increase the nation's welfare

a) Always

b) Never

c) Sometimes

d) All times

(9) Direct control refers to

a) Interferences with the operation of the market forces

b) Price and wage controls

c) Trade and exchange controls

d) All of the above

(10) A depreciation of a nation's currency usually causes internal or domestic price

a) Fall

b) Rise

c) Remains unchanged

d) Any of above

(11) A nation's demand curve for foreign exchange is derived from

a) The foreign demand curve for the nation's exports

b) The nation's supply curve for exports

c) The nation 's demand curve for imports

d) The foreign demand curve of nation' s imports

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