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Management · all questions

International Finance and Treasury
practice.

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Three major reasons to study international finance include

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The difference between a forward trade and a derivative may be attributed to which one of the following?

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In India, the spot market settlement is done in

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Which of the following statement is true for BIS (Banks for International Settlement)?

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Which of the following statement is true?

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Which of the following agencies does not facilitate international finance?

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Match the following.
List-I List-II
a. Euro currency 1. Euro lent in USA
b. Euro bond 2. Securities offered in other currency
c. Euro 3. Currency of EU

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Exchange rate entail delivery of trade currency within two business days known as

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Match the following.
List-I List-II
a. Increase in inflation 1. Appreciation of home currency
b. Increase in interest rate 2. Reduction in home currency
c. lncrease in exports 3. Reduction in foreign currency

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Under foreign exchange risk measurement, economic risk emerges out of which of the following?
1. Riskiness of company's foreign exchange positions resulting from its business activities.
2. The holding period or length of time over which the foreign exchange position is planned to be held.
3. A change in the present value of the future after tax cash flows due to changes in exchange rates.
4. The unit of currency to be used for the denomination of the value of currency.

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Which of the following statements are correct?
Statement I In a forward market, the delivery and payment takes in future at a predetermined price. The prices are determined today, but the currencies are exchanged in future. Forward market comprises of trade of various instruments however, it is central to the exchange of foreign currency.
Statement II A forward market is an Over-the-Counter market which sets the rate for future delivery of currency, assets or financial securities.

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If one anticipates that the rupee is going to appreciate against the US dollar, one might speculate by . . . . . . . . rupee call options or . . . . . . . . rupee put options.

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Which of the following statement is correct?
Statement I Indian MNC issuing bond denominated in Indian, which is sold to investors in USA is an example of European Bond.
Statement II If, an Indian firm issues dollar denominated bonds in Europe then it is a foreign bond.

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Which of the following option is correct?
Statement I Direct quote is when the foreign currency remains fixed and the home currency keeps on varying.
Statement II Quotations in direct quote are the ones that represent the value of a foreign currency in rupees (number of rupees per currency) are denoted as direct quotations.

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Bid-ask spread in foreign exchange market is the

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Indicate correct codes for the following statements of Assertion (A) and Reason (R).
Assertion (A) The Global Managers must develop systems and policies that address floor price ceiling price and optimum price.
Reason (R) The Global Managers must be in line with global opportunities and constraints.

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Which of the following statement is not aim of international capital market?

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Which of the statements is/are true?
1. American option allows the option buyer to exercise his rights at any point before the expiry date.
2. Under European options, the option buyer can exercise his right only on the date specified in the option and not before that.

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From the statements given identify choose the correct answer.
Statement I To become a global corporation, a firm passes through different stages, viz, capturing markets abroad, establishing joint venture/subsidiaries abroad, developing into MNCs and moving towards global mode of operation.
Statement II Government support is not a pre-requisite of the successful globalisation of the business.

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If inflation is expected to be 5% htgher in the United Kingdom than in Switzerland, then

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