This quiz works best with JavaScript enabled. Home > International Finance > International Finance – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Finance Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Following are some of the notable international finance organizations, Except A) World Bank. B) IMF. C) IFC. D) IMC. Show Answer Correct Answer: D) IMC. 2. SLFKJD A) FKGJ. B) F. C) F. D) F. Show Answer Correct Answer: A) FKGJ. 3. Decrease in a currency value is called. A) Ratio. B) Appreciation. C) Depreciation. D) Derivatives. Show Answer Correct Answer: C) Depreciation. 4. A company has accounts recievable when it purchases items on account A) True. B) False. Show Answer Correct Answer: B) False. 5. This is anything people will accept for payment. A) Unit of account. B) Medium of exchange. C) Store of value. D) U S Dollar. Show Answer Correct Answer: B) Medium of exchange. 6. This records the purchase and sale of financial assets like stocks and bonds. A) Financial account. B) Current account. C) Money market account. D) Checking account. Show Answer Correct Answer: A) Financial account. 7. This is a "pegged" system where the value of currency is fixed against another country's currency. A) Floating exchange rate. B) Managed exchange rate. C) Fixed exchange rate. D) Foreign exchange market. Show Answer Correct Answer: C) Fixed exchange rate. 8. If the Canadian dollar is worth $ .90 in the US, calculate the value of 250 Canadian dollars in US dollars A) 225. B) 250. C) 275. D) 200. Show Answer Correct Answer: A) 225. 9. For forwarding currency purchases: A) Customer accepts to buy foreign currency in the future at the rate determined today. B) Customer accepts to buy foreign currency in the future at the rate determined today. C) Parties make calculations today for an acceptable amount of foreign currency in the future. D) The parties make the amount of foreign currency at the exchange rate now maintained in the future. Show Answer Correct Answer: A) Customer accepts to buy foreign currency in the future at the rate determined today. 10. Limit on the quantity of a product that may be imported A) Protectionists. B) Quota. C) The trade fails. D) Balance of payments. Show Answer Correct Answer: B) Quota. 11. Exchange Rate If one dollar is equivalent to 0.73 pounds sterling, how many pounds sterling are in 220 dollars? A) 165.60 Pounds Sterling. B) 150.60 Pounds Sterling. C) 160.60 Pounds Sterling. D) 170.60 Pounds Sterling. Show Answer Correct Answer: C) 160.60 Pounds Sterling. 12. Futures contracts are regularly traded on the A) Chicago Board of Trade. B) New York Stock Exchange. C) American Stock Exchange. D) Chicago Board of Options Exchange. Show Answer Correct Answer: A) Chicago Board of Trade. 13. The agency costs of an MNC are likely to be higher if it A) Scatters its subsidiaries across many foreign countries. B) Decreases its volume of international business. C) Uses a centralized management style. D) B and C. Show Answer Correct Answer: A) Scatters its subsidiaries across many foreign countries. 14. U9V-9) Prohibits all trade with people and businesses in a specific country, done for political reasons A) Embargo. B) Quota. C) Tariff. D) Subsidy. Show Answer Correct Answer: A) Embargo. 15. Which of these is NOT a model of Multinational Company? A) Centralized. B) Regional. C) Multinational. D) Local. Show Answer Correct Answer: D) Local. 16. U9V-6) Government policies that restrict or stop the flow of goods and services among countries. A) Trade. B) Shortage. C) Trade Barrier. D) Scarcity. Show Answer Correct Answer: C) Trade Barrier. 17. What does the Financial Account refer to? A) Transactions involving short-term financial assets between countries. B) New direct foreign investment over a given period. C) New portfolio investment over a given period. D) Special types of investment including DFI and portfolio investment. Show Answer Correct Answer: D) Special types of investment including DFI and portfolio investment. 18. Special Drawing Rights (SDR) are: A) An artificial international reserve allotted to the members of the International Monetary Fund (IMF), who can then use it for transactions among themselves or with the IMF. B) A "portfolio" of currencies, and its value tends to be more stable than the currencies that it is comprised of. C) Used in addition to gold and foreign exchanges, to make international payments. D) All of the above. Show Answer Correct Answer: D) All of the above. 19. $\epsilon^{PPP}>\epsilon$ A) Domestic country is more expensive than foreign country = foreign currency is undervalued. B) Domestic country is less expensive than foreign country = foreign currency is overvalued. C) Foreign country is more expensive than foreign country = domestic currency is undervalued. D) None of above. Show Answer Correct Answer: A) Domestic country is more expensive than foreign country = foreign currency is undervalued. 20. Assume a two-country world:Country A and Country B. Which of the following is correct about purchasing power parity (PPP) as related to these two countries? A) If Country A's inflation rate exceeds Country B's inflation rate, Country A's currency will weaken. B) If Country A's interest rate exceeds Country B's inflation rate, Country A's currency will weaken. C) If Country A's interest rate exceeds Country B's inflation rate, Country A's currency will strengthen. D) If Country B's inflation rate exceeds Country A's inflation rate, Country A's currency will weaken. Show Answer Correct Answer: A) If Country A's inflation rate exceeds Country B's inflation rate, Country A's currency will weaken. ← PreviousNext →Related QuizzesInternational Finance Quiz 1International Finance Quiz 2International Finance Quiz 3International Finance Quiz 4International Finance Quiz 6International Finance Quiz 7International Finance Quiz 8International Finance Quiz 9International Finance Quiz 10International Finance Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books