International Finance and Treasury – Set 16 January 29, 2025 by aasi Home › Management › International Finance and Treasury International Finance and Treasury International Finance and Treasury – Set 16 📝 Model Practice Set ⚡ Instant Answers & Explanation 🎯 Exam Oriented 0% Report a question What’s wrong with this question? You cannot submit an empty report. Please add some details. 123456789101112131415161718192021222324252627 International Finance and Treasury – Set 16 Dear ! This is International Finance and Treasury – Set 16 Quiz and it contains 27 questions. Keep Learning! 1 / 27 1) The following statement with respect to currency option is wrong Call option will be used by exporters Put option gives the buyer the right to sell the foreign currency Foreign currency- Rupee option is available in Nepal An American option can be executed on any day during its currency 2 / 27 2) The intrinsic value of a Call option is Strike price – Underlying Price Underlying price – Strike Price Strike price > Underlying price Strike price < Underlying price 3 / 27 3) The marking to market in respect of a currency future refers to Putting up for sale specific lot of futures Adjusting the margin money of buyer and seller to reflect the current value of futures Quoting rates for different maturities Allotting futures among different brokers 4 / 27 4) Nations that have major economic expansion attract Imports Direct Foreign Investment Exports Privatization 5 / 27 5) Japan yen denominated Bond issued in Japan domestic Market Yankee Bond Samurai Bond Bull dog Bond Dual Bond 6 / 27 6) European Economic Community founded in 1957 1958 1963 1968 7 / 27 7) Determination of forward rates is explained by Purchasing power parity theory Uncovered interest arbitrage Demand and Supply for spot currency demand and supply of currency in future 8 / 27 8) An interest rate cap is a series of Call options Put options Periodical payments Differential payments 9 / 27 9) The term Euro currency Market refers to The countries which have adopted Euro as their currency The market in which Euro is exchanged for other currencies The market where the borrowing and lending of currencies take place outside the country of issue The international foreign exchange market 10 / 27 10) The world’s four major trading currencies are all free to float against each other. They include all the following except. The British Pound The Japanese Yen The Spanish Peso The US Dollar 11 / 27 11) Which of the following theories suggests that firms seek to penetrate new markets over time? Theory of Comparative Advantage Imperfect Market Theory Product cycle theory None of these 12 / 27 12) The margin for a currency future should be maintained with the clearing house by The buyer The seller Both the buyer and the seller Either the buyer or the seller as per the agreement between them 13 / 27 13) Bond issued simultaneously in several global financial center is Domestic Bond Foreign Bond Global Bond Euro Bond 14 / 27 14) Which of the countries did not become a member of the Economic and Monetary Union as on Jan 1 1999. Britain France Germany Italy 15 / 27 15) IMF is firm of 190 Member Countries 182 Member Countries 186 Member Countries 183 Member Countries 16 / 27 16) The acronym CIRCUS stands for Current Interest Rate Swap Circular Currency Swap Combined Income Range Currency Swap Combined Interest Rate and Currency Swap 17 / 27 17) The marking to market of a futures contract is done Daily, based on the opening price for the day Weekly, based on the opening price for the week Daily, based on the closing price for the previous day Weekly based on the closing price for the previous week 18 / 27 18) Not a profit maximizing business is International Monetary Fund International bank for Reconstruction and Development International Financial Corporation World Trade Organisation 19 / 27 19) Gifts and Relief are Merchandise Payment Service Payment Factory Income Transfer payment 20 / 27 20) An option at-the-money when The strike price is greater than the spot price, in the case of a call option The strike price is greater than spot price, in the case of a put option The option has a ready market The strike price and the spot price are the same 21 / 27 21) Cash and carry arbitrage explains the determination of Forward Rates for currencies Spot rates for currencies Both forward and spot rates for currencies Penalty for non-execution of forward contracts 22 / 27 22) For contingency exposure of foreign exchange, the best derivative that can be used to hedge is Forwards Futures Options Swaps 23 / 27 23) Which of the following institutions cannot be included in the international financial and monetary system? WTO Bank for International Settlements IMF World Bank 24 / 27 24) In a quote exchange rate, the currency that is to purchase with another currency is called Liquid currency Foreign Currency Local Currency Base currency 25 / 27 25) Under the interest rate option, the buyer Avoids unfavourable movement in interest rates Gains from favorable movement in interest rates Both a and b Gains nothing, only the seller gains 26 / 27 26) US Dollar denominated bond issued in US domestic Market Yankee Bond Bull dog Bond Samurai Bond Dual Bond 27 / 27 27) International Monetary Fund is headquartered in Washington, United States New York City, United States Geneva, Switzerland Avenue Du Mont Blanc, Switzerland Your score isThe average score is 0%🎉 Challenge alert! 💡 Share this quiz with your friends and see who scores the highest! 🏆🤩🔥 LinkedIn Facebook Follow Us @ 0% Restart quiz Exit We’d love to hear your thoughts! 📝 Share your valuable review with us. 🙌 🌟 Thank you for your support! 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