1. The value of SDR is 

 (A) equivalent to one US dollar 
(B) based on basket of five currencies
(C) average of the value of US dollar and Euro 
(D) based on value of gold  



2. The term World Bank refers to 

 (A) IBRD 
(B) IDA 
(C) Both IBRD and IDA 
(D) IFC



3 . IBRD lending is not available for

 (A) middle income countries 
(B) low income countries 
(C) multilateral agencies 
(D) developed countries



4. The eligibility to borrow from IDA is based on 

 (A) relative poverty 
(B) lack of creditworthiness to borrow on market terms 
(C) good policy performance 
(D) all the above



5. Financial products of IFC does not include 

 (A) loans 
(B) equity participation 
(C) risk management products 
(D) none of the above



6. MIGA stands for 

 (A) Multilateral Investment Guarantee Agency 
(B) Multilateral Institutional and Government Agencies 
(C) Mutual Interest Guaranteeing Agencies 
(D) Mutual Institutional and Government Agencies



7. Guarantee provided by MIGA to private investors covers risk of 

 (A) transfer restriction 
(B) expropriation 
(C) breach of contract 
(D) all the above



8. The activities of ADB include 

 (A) project financing 
(B) guaranteeing loans 
(C) both a and b 
(D) risk management products



9. A ‘credit’ in balance of payments indicates 

 (A) Accumulation of bank balances abroad 
(B) Foreign direct investment received into the country 
(C) Earning of foreign exchange by the country 
(D) Earning of foreign exchange or incurring of liability abroad or decrease in asset abroad



10. The current account of balance of payments does not include 

 (A) Trade in goods 
(B) Trade in services 
(C) Income on investments 
(D) None of the above




More MCQs on Foreign Exchange Management