INTERNATIONAL FINANCE

T.Y B.COM

SEMESTER - 6

INTERNATIONAL FINANCE

(IF)

MCQS : UNIT-IV 

INTERNATINOAL BANKING & EURO CURRENCY MARKET

1. Which bank is related to the acceptance foreign currency deposit, provide finance to international business operators & indulge in hedging & advisory services.

(a) Joint venture banks 

(b) Off shore banks 

(c) International bank

(d) RBI

2. The major difference between domestic bank & foreign banks in terms of:

(a) Deposit

(b) Loans

(c) Investment made 

(d) All of the above

3. Most of the world's 50 largest banks are from:

(a) Japan, US 

(b) France

(c) UK & Germany 

(d) All of the above

4. Who has pointed out the reasons for the growth of international banking.

(a) Rugman & Kamath 

(b) Marshall & Mill 

(c) Adam Smith

(d) Ricardo

5. Out of the following which is not the reason for growth of international banks.

(a) Prestige 

(b) Growth 

(c) High marginal cost 

(d) Knowledge

6. Which bank provide services like trade financing, honoring letter of credit & accepting the draft

(a) International traders

(b) Correspondent bank

(c) Offshore bank

(d) Joint-venture banks

7. Joint venture bank also known as:

(a) Consolidation bank

(b) Consortium bank

(c) Merger bank

(d) None

8. Offshore financial center (OFC) adopt Government banking system such as:

(a) Insurance

(b) Low deposits & low time period

(c) Easy method of funding

(d) All of the above

9. Out of the following which is the advantage of OFC (Offshore Financial Centre)

(a) Hiding interest income

(b) Economic crime

(c) Illegal Activity

(d) Anti-National Activity

10. Asian Development Bank (ADB) was set up on:

(a) January 1966

(b) 19th December 1966

(c) 19th January 1966

(d) December 1980

11. ADB having head quarter

(a) Russia 

(b) UK

(c) Manila 

(d) Denmark

12. How many countries signed charter for ADB.

(a) 33

(b) 23 

(c) 39

(d) 34

13. ECAFE stands for:

(a) Economic committee for Asia & Far East

(b) Economic commission for Asia & Far East

(c) Economic commission for Asia & From East

(d) Economic committee for Africa & Far east 

14. At present ADB having membership of ___________ Countries.

(a) 56 

(b) 76

(c) 46

(d) 36

15. How many members in Board of Directors of ADB.

(a) 20

(b) 15

(c) 25

(d) 10

16. Which function is not performed by Board of Governance.

(a) Help regional members

(b) Entry of New member

(c) Change in authorized capital 

(d) Help regional members

17. ADB started its operations with an authorized capital of

(a) $ 4.9 Billion

(b) $ 2.9 Million 

(c) $ 5.9 Billion

(d) $ 2.9 Billion

18. In 1992 authorized capital of ADB raised to:

(a) $ 25 Billion 

(b) S 25 Million

(c) $ 20 Million

(d) None

19. 50% of authorized capital of ADB contributed by:

(a) Japan

(b) Germany

(c) U.K

(d) USA

20. ADB provides the financial assistance in terms of which types of loans?

(a) Project loans 

(b) Sector loan 

(c) Programme loan 

(d) All of the above

21. Which type of the loan relate to implementation of a policy.

(a) Short term loan

(b) Sector loan 

(c) Project loan 

(d) Programme loans

22. ADB provides all direct loans or a period of ______ years.

(a) 25

(b) 10 

(c) 30

(d) 20

23. What is the grace period of direct loans provided by ADB?

(a) Seven years

(b) One year

(c) Three years 

(d) Five years

24. For lending by ADB out of special fund, sanction made on the basis of _______ of the total number of governors required.

(a) 2/3

(b) 1/4 

(c) 1/2 

(d) 2/4

25. Since July 1990, ADB charges _________ % interest rate annually on Dollar loan:

(a) 6.53% 

(b) 7.51% 

(c) 6.57%

(d) 5.53%

26. ADB has been providing assistance in the field of:

(a) Energy, health

(b) Agriculture & Agro based industries

(c) Development Banking, Transport, Education

(d) All of the above

27. Though India has been a founder member of ADB, lending to India commenced only in _______.

(a) 1996

(b) 1956 

(c) 1976

(d) 1986

28. In recent years ADB has shifted loans for:

(a) Public resource management

(b) Urban environmental improvement

(c) Health, Nutrition & Housing finance 

(d) All of the above

29. Eurocurrency market is an international market whose major location is in _______

(a) Germany

(b) Italy

(c) London

(d) Spain

30. The main participants in the Eurocurrency market are:

(a) Commercial bank 

(b) Large MNC 

(c) Government Agencies 

(d) All of the above

31. Eurocurrency were put into circulation since.

(a) 1-1-2001 

(b) 1-1-2002 

(c) 1-1-2003 

(d) 1-4-2002

32. Euro is administered by European system of central bank having headquarter in ________

(a) Germany

(b) Netherland 

(c) France 

(d) Greece

33. Euro-market function on the principles of:

(a) Deposit creation 

(b) Investment multiplier 

(c) Credit creation 

(d) None

34. Euro-dollar loans are generally for ________period.

(a) Short 

(b) Long 

(c) Very long

(d) Reasonable

35. Euro- market help to reduce international liquidity problem by way of:

(a) Trading to finance

(b) Enable exporter & importer to obtain credit

(c) Provide opportunities to short funds

(d) All above 

36. Euro-dollar as a source of international liquidity also known as:

(a) Motor currency 

(b) Trade currency 

(c) Vehicle currency 

(d) Growing currency

37. International bank for reconstruction & development (IBRD) established in ________

(a) 1944

(b) 1945

(c) 1939

(d) 1954

38. IBRD start functioning from ________

(a) 1955

(b) 1945

(c) 1946

(d) 1956

39. IBRD established on proposal of

(a) IMF

(b) FDI 

(c) UNO

(d) WTO

40. World Bank & IMF are ________ each other.

(a) Competitive

(b) Complementary

(c) Substitute

(d) Joint

41. There are ________ member countries in IBRD.

(a) 182

(b) 183

(c) 187

(d) 1988

42. Both IMF & IBRD are lending institutions. The IMF for _______ & the IBRD for _______.

(a) Short term, long term

(b) Long term, short term

(c) Short term, short term

(d) Long term, long term

43. IBRD is a three ties basis, how many countries in their board of governors

(a) Top ten countries

(b) Top seven

(c) Top five

(d) None

44. Board of governors in IBRD appointed for _______ years.

(a) Five 

(b) Three 

(c) Seven 

(d) Any one of them

45. For technical purpose, Board of IBRD delegates power to ______ in day to day administration.

(a) President

(b) Chairman 

(c) Secretary

(d) Executive Directors

46. Under IBRD how many executive directors at present:

(a) 9

(b) 19

(c) 21

(d) 29

47. How many executive directors in IBRD are nominated by large shareholders countries.

(a) Five

(b) Six

(c) Seven 

(d) Ten

48. Countries paying highest subscription amount to IBRD using.

(a) Monopoly power

(b) Veto Power 

(c) Immunity power

(d) Mind power

49. In recent years IBRD has made loans for specific development projects in the field of:

(a) Agriculture

(b) Power 

(c) Transport & Industry 

(d) All of the above

50. What institute in International scenario are known as "Bretton woods" twin sisters

(a) IMF & WTO 

(b) IBRD & World Bank 

(c) IMF & World Bank 

(d) WHO & WTO

51. In which year IBRD launched its cancer as the multilateral development bank.

(a) 1946 

(b) 1944

(c) 1936

(d) 1941

52. In 2012 how many countries were the member of IBRD.

(a) 182

(b) 186

(c) 188

(d) 189

53. In addition to Financial Assistance, world bank puts more emphasis on.

(a) Institutional technical assistance 

(b) Infrastructure assistance

(c) Provide advice & expertise

(d) All of the above

54. Which organization is called "knowledge bank"

(a) IBRD

(b) IMF

(c) FDI

(d) ADB

55. "MDG" stands for:

(a) Millennium detail goals

(b) Millennium development goals

(c) Multiple development goal 

(d) Mumbai disaster gins

56. Which loan is disbursed by world bank in exchange for policy reforms like liberalization, privatization, tax reforms etc.

(a) Sectoral loans

(b) Project loans

(c) Structural adjustment loan (SAL) 

(d) None of the above

57. International finance corporation (IFC) established in:

(a) 1955 

(b) 1956

(c) 1966

(d) 1944

58. IFC having member countries:

(a) 133

(b) 166 

(c) 134

(d) 139

59. Which corporation is legally & financially separate from the IBRD,

(a) IFC

(b) IMF 

(c) FCI

(d) WTO

60. IFC having main responsibilities...

(a) Provide risk capital

(b) Development of local market

(c) Stimulate international flow of capital

(d) All of the above

61. Loans made by IFC to private firms in the developing countries usually for a period.

(a) Six to eleven years

(b) Seven to twelve years

(c) Seven to twelve months

(d) Six to twelve months

62. What is the key feature of IFC for granting loans:

(a) Private enterprises

(b) Investment made in conjunction with private business

(c) Both (a) & (b)

(d) None

For More Detail Contact Us And Follow On Study For Buddies

Thank You