MCQs on Foreign Exchange Management - 11

1. The WTO Agreement related to investment measures is: 

(C) GATS. 
(D) TCA.

2. The major players in the foreign exchange market are 

(A) commercial banks. 
(B) corporate. 
(C) exchange brokers. 
(D) central bank of the country and the Central Government

3. Derivatives can be used by an exporter for managing 

(A) currency risk. 
(B) cargo risk. 
(C) credit risk. 
(D) business risk.

4. The forward market is especially well-suited to offer hedging protection against 

(A) translation risk exposure. 
(B) transactions risk exposure. 
(C) political risk exposure. 
(D) taxation

5. The euro is the name for 

(A) a currency deposited outside its country of origin. 
(B) a bond sold internationally outside of the country in whose currency 
(C) the bond is denominated 
(D) a common European currency.

6. Which of the following are international financial considerations faced by both small and large MNEs? 

(A) Currency systems 
(B) Tax systems 
(C) Interest rates 
(D) Exchange rate

7. Strategies in which funds are moved from one MNE operation to another are called 

(A) funds positioning techniques 
(B) arm's length techniques. 
(C) fronting techniques. 
(D) subsidiary flows.

8. Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called 

(A) commodity markets. 
(B) fund-available markets. 
(C) derivative exchange markets. 
(D) financial markets.

9. The bond markets are important because 

(A) they are easily the most widely followed financial markets in the United States. 
(B) they are the markets where foreign exchange rates are determined. 
(C) they are the markets where interest rates are determined. 
(D) they are the markets without risk

10. Most FDI and trade are made by: 

(A) China, Japan and the US. 
(B) The US, the EU, and Japan 
(C) North America 
(D) ASEAN countries

More MCQs on Foreign Exchange Management



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