8. EUR/INR 68.0000-68.0030 & INR 1.4550-1.4600 what is the arbitage oppportunity
Correct : D. 2828
9. ___ risk is also called as "Accounting Exposure"
Correct : C. translation
10. ADR stands for ____________
Correct : B. american depository receipt
11. In quote of 1 USD = INR 60, is a home country
Correct : A. india
12. The world’s major trading currencies, which are free to float against each other, include all of the following except
Correct : D. spanish peso
13. Systematic record of economic transactions of a country during given period of time is known as
.
Correct : B. bop
14. Fund based services includes all of the following except .
Correct : D. m&a services
15. The Exchange rate is the
Correct : C. price of one country\s currency expressed in terms of another country\s currency
16. Nations that have major economic expansion attract
Correct : C. fdi
17. Fee Based services includes all of the following except .
Correct : B. factoring
18. Current account includes all of the following, except .
Correct : C. fdi
19. Reserves are held in the following forms, except
.
Correct : D. silver
20. Statistical residue is a part of .
Correct : A. errors & omissions
21. SDR is an international reserve asset created by
.
Correct : A. imf
22. FDI in BOP is covered under .
Correct : C. capital account
23. Under Exchange rate system, there is no interference of monetary authorities to decide exchange rate.
Correct : B. floating
24. Under Exchange rate system, value of currency is decided by the market forces of demand and supply.
Correct : B. floating
25. In Spot market, exchange of currencies take place on basis.
Correct : B. t + 0
26. An account which is held within a domestic country by a foreign bank, in a currency of domestic country is known as account
Correct : C. vostro
27. SBI A/c with HSBC in UK is an example of
Correct : B. nostro
28. Inverse quote for USD/DKK 5.7935 - 5.8085 is
Correct : A. dkk/usd 0.1722 - 0.1726
29. 100 INR/JPY is an indirect quote for
Correct : A. india
30. The quote 1 GBP = INR 99.85 is a direct quote for .
Correct : A. india
31. In Holgate’s principle, if Bid > Ask, Swap points of forward rate are to be
Correct : B. subtracted
32. is the smallest unit by which a currency quotation can change.
Correct : A. pip
33. If spot USD/INR is 50, and six months forward rate is 51 then AFM is
Correct : B. 4%
34. is a market where foreign currencies are bought & sold.
Correct : B. forex market
35. Theory states that the exchange rate between currencies of two countries should be equal to the ratio of the countries price levels.
Correct : B. ppp
36. If formula I of Fishers effect is positive, borrow
and invest in .
Correct : D. home, foreign
37. is a standardized contract to exchange one currency for another at a
Correct : A. futures contract
38. Foreign currency forward market is
Correct : A. over the counter unorganized market
39. An option giving the buyer of the option the right to buy but not an obligation to buy a currency is called
Correct : A. call option
40. contacts are bilateral contracts.
Correct : A. forward
41. bond is issued in a local market by a foreign borrower, denominated in local currency
Correct : A. foreign bond
42. bond is issued in a local market by a domestic borrower, usually denominated in local currency
Correct : A. foreign bond
43. is a negotiable instrument issued by a US bank, representing non-US company stock, trading on the US stock Exchange.
Correct : A. adr
44. is a negotiable instrument issued by an international depository bank, representing a foreign company stock, trading on global stock Exchanges.
Correct : B. gdr
45. In ADR/GDR process, _ issues depository receipts in foreign markets.
Correct : B. depository bank
46. IPO stands for .
Correct : D. initial public offering
47. was introduced at a time when forex reserves of the country were low.
Correct : A. fera
48. can authorize a person/company to deal in foreign exchange.
Correct : B. rbi
49. frames rules and guidelines for Forex Business in India
Correct : D. fedai
50. If IRR > WACC, then the Project must be
Correct : A. accepted
51. is known as Benefit/cost ratio
Correct : A. profitability index
52. Lower the better applies to method of Capital budgeting
Correct : B. pay back period
53. is not a type of foreign exchange risk.
Correct : D. natural risk
54. All are methods of Internally managing foreign exchange risk except, .
Correct : D. forward contract
55. If two banks are quoting the following GBP rates: Bank A : Rs 78.9810 - 79.1110 and Bank B : Rs 79. 0110 - 79.2350. The arbitrage opportunity will be .
Correct : B. 0
56. When a company has receipts & payments in the same foreign currency due at the same time, it can use technique of managing foreign exchange risk.
Correct : D. exposure netting (matching)
57. An investor looking at reducing his risk is known as .
Correct : B. hedger
58. analyses if the benefits will justify the project cost/investment done.
Correct : A. economic analysis
59. Spot USD/INR is 60.5600/60.5700 and one month SWAP points are 600/700 then outright forward rate will be .
Correct : A. 60.6200/60.6400
60. Spot CHF/DEM rate is 0.7865/78 and one month forward points are 25-20 then what will be the one month forward CHF/DEM quote
Correct : D. 0.7840 - 0.7858
61. The world’s major trading currencies, which are a free to float against each other,
include all of the following except__________________
Correct : D. Spanish Peso
62. National that have major economic expansion attract _____________________
Correct : C. FDI
63. IMF stands for ____________
Correct : A. International Monetary Fund
64. In the foreign exchange market, the _______________ of one country is traded for the
________________of another country.
Correct : A. Currency, Currency
65. Systematic record of economic transaction of a country during a given period of time is
_______________--
Correct : B. BOP
66. Funs based services includes all of the following except _______________-
Correct : D. M & A Services
67. _________ deals with the global rules of trade between nations.
Correct : A. WTO
68. Exchange rate is the __________________
Correct : C. Price of one country’s currency expressed in terms of another country’s currency
69. Current account includes all of the following except _______________-
Correct : C. FDI
70. Reserves are held in following forms, except __________________
Correct : D. Silver
71. Statistical residue is a part of ____________________
Correct : A. Errors and Omissions
72. Difference between the value of merchandise exports and imports is
____________________
Correct : B. BOT
73. Sale or purchase of gold in BOP is covered under _____________________
Correct : C. Official Reserve Account
74. SDR is an international reserve asset created by_____________________
Correct : A. IMF
75. FDI in Bop is covered under ________________
Correct : A. Capital Account
76. FDI Stands for _____________
Correct : D. Foreign direct Investment
77. Bretton woods is a town in _________________ in US
Correct : C. Hampshire
78. G -10 Countries included all of the following, except ____________
Correct : D. China
79. Under _______ monetary unit is associated with the value of circulating gold coins.
Correct : A. Gold Specie
80. Under ____________ there is no interference of monetary authorities to decide
exchange rate.
Correct : B. Floating
81. In Smithsonian Agreement, the variation zone was increased from 1% to
____________ %’
Correct : A. 2.25
82. In ____________ president Nixon announced that dollar would no longer be
convertible into gold.
Correct : D. 1971
83. During BWS, value of USD was fixed at 1-ounce gold is equal to
USD______________
Correct : D. 35
84. Euro is official currency of _____ member states.
Correct : C. 19
85. In Spot market, exchange of currencies take place on ___________
Correct : B. T+2
86. An account which is held within a domestic country by a foreign bank, in the currency of domestic country _________________
Correct : C. Vostro
87. SBI Account with HSBC in Uk is an example of ___________
Correct : B. Nostro
88. Spot rate is also called as ________________
Correct : D. Current Market Price
89. Inverse quote for “1GBP = 99.1100/9900 INR is INR GBP____________
Correct : D. 0.0100/0.0101
90. If USD SGD 1.5423/33; SGD GBP 0.3323/33; GBP USD quotation is
__________________
Correct : B. 1.9441/512
91. Inverse quote for USD / DKK 5.7935 – 5.8085 is _________________
Correct : A. DKK /USD 0.1722-0.1726
92. Holgate principle, if bid > Ask, Swap points for forward rate are to be_________
Correct : B. Subtracted
93. _________ is the smallest unit by which a currency quotation can change.
Correct : A. PIP
94. _________ deal in currencies to benefit from movements in currency exchange
markets.
Correct : C. Speculators
95. Currently the largest foreign exchange market in the world is ____________-.
Correct : D. London
96. __________ is real time gross settlement funds transfer system operated by the United
states Federal reserve banks.
Correct : D. Fedwire
97. Spot used INR 60- and six-months forward is USD INR 61.AFM is ____________
Correct : A. 3.33%
98. SWIFT stands for ____________
Correct : A. System of World Interbank Financial Transportation
99. _________ is market where foreign currencies are bought and sold.
Correct : C. Capital Market
100. _________ theory states that the exchange rate between currencies of two countries
should be equal to the ratio of the countries price levels.