International Finance Quiz 14 (9 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. What is the summary of flow of funds due to purchases of goods or services or the provision of income on financial assets?

Correct Answer: D) Current Account.

2. If interest rates on the euro are consistently below U.S. interest rates, then for the international Fisher effect (IFE) to hold:

Correct Answer: A) The value of the euro would often appreciate against the dollar.

3. Exchange Rate If one pound sterling is equivalent to 1.37 dollars, how many dollars is 100 pounds sterling?

Correct Answer: C) 137 dollars.

4. Which are the sides of the crisis?

Correct Answer: D) All of the above.

5. The seller of an option has the

Correct Answer: A) The obligation to buy or sell the underlying asset.

6. Currency futures contracts sold on an exchange:

Correct Answer: A) Contain a commitment to the owner, and are standardised.

7. The World Bank was established in 1922.

Correct Answer: A) False.

8. The commonly accepted goal of the MNC is to:

Correct Answer: B) Maximize shareholder wealth.

9. The international monetary system can be defined as the institutional framework within which:

Correct Answer: D) All of the above.