1. Which of the following is not an example of an international trade draft? 

 (A) Time draft. 
(B) Sight draft. 
(C) Both the first and second answers are correct 
(D) Usance draft


2. A group of European countries have formed a union and created a common currency known as __________. 

 (A) the EU currency 
(B) the European Union 
(C) the EMU 
(D) the Euro



3. The forward exchange rate __________. 

 (A) is the rate today for exchanging one currency for another for immediate delivery 
(B) is the rate today for exchanging one currency for another at a specific future date 
(C) is the rate today for exchanging one currency for another at a specific location on a specific future date 
(D) is the rate today for exchanging one currency for another at a specific location for immediate delivery



4. The spot exchange rate __________. 

 (A) is the rate today for exchanging one currency for another for immediate delivery 
(B) is the rate today for exchanging one currency for another at a specific future date 
(C) is the rate today for exchanging one currency for another at a specific location on a specific future date 
(D) is the rate today for exchanging one currency for another at a specific location for immediate delivery



5. What are the forms of assistance that the World Bank provides to its members? 

 (A) Technical and financial 
(B) Political and financial 
(C) Political and economic 
(D) Technical and military



6. The World Bank Group is made up of how many organisations? 

 (A) 3 
(B) 5 
(C) 8 
(D) 10



7. The most liquid asset among the following is? 

 (A) Gold 
(B) Share 
(C) Cash 
(D) land


8. The system operated by the WTO is known as the 

 (A) multilateral trading system 
(B) bilateral trading system 
(C) ratified system 
(D) ungratified system



9. The price at which a market maker is prepared to buy (a currency) or borrow (money) is termed as 

 (A) spot rate 
(B) bid rate 
(C) ask price 
(D) forward rate



10. A deposit or borrowing domiciled outside the home country of the currency is called as 

 (A) foreign bond 
(B) euro bond 
(C) euro currency 
(D) domestic bond




More MCQs on Foreign Exchange Management