INTERNATIONAL FINANCE (MCQS) JANUARY 2013

T.Y B.COM

SEMESTER - 6

INTERNATIONAL FINANCE

MCQS - JANUARY 2013

1. The supply Curve of foreign exchange of a nation's derived from

(a) The foreign demand curve for the nation's exports

(b) The nation's Supply curve of imports

(c) The foreign supply curve of the nation's import

(d) The nation's demand curve for impons

2. Foreign bill of exchange normally supports by

(a) A letter of credit

(b) Banknote 

(c) Foreign goods and services 

(d) None of the above

3. In the balance of the payment debit and credit entries will be

(a) Always remain unequal

(b) Always balance

(c) Some time balance

(d) None of the above

4. Direct control refer to

(a) Interferences with the operation of the market forces

(b) Trade and exchange

(c) Price and wage controls

(d) All of the above

5. A depreciation of a nation's currency causes internal or domestic Price

(a) Fall

(b) Rise

(c) Remains unchanged

(d) All of the above

6. The absolute purchasing power parity theory are rejected on the ground that the relative price structure between two countries cannot be identical on account of

(a) Difference in qualities of goods and services

(b) Difference in tax structure

(b) Difference in tariff policies

(d) All of the above

7. A nation's demand curve for foreign exchange is derived from

(a) The foreign demand curve for the nation's exports 

(b) The nation's supply curve for exports

(c) The nation's demand curve for exports

(d) The foreign demand curve of nation's import

8. Foreign exchange is determined by

(a) Importers

(b) Buyers of fixed assets abroad

(c) Borrowing from abroad

(d) Both (A) & (B)

9. The purchasing power parity theory was formulated by

(a) Adam smith

(b) Leaner

(c) Alfred marshal

(d) Gustov Cassel

10. Deficit in balance of payment can be solved by

(a) Expenditure reducing policies

(b) Expenditure switching policies

(c) Both (A) & (B)

(d) None of the above

11. Difference in export and import of services is called

(a) Balance of invisible

(b) Balance of trade

(c) Balance of visible

(d) Balance of capital account

12. Balance of current account includes

(a) Balance of trade

(b) Balance of invisible

(c) Balance of unrequired transfers

(d) All of the above

13. If a country has deficit in balance of current account balance of capital account will be

(a) Deficits

(b) Surplus

(c) zero

(d) None of the above

14. Borrowing from foreigners is

(a) Capital receipts

(b) Export of goods

(c) Un requited receipts 

(d) None of the above

15. Capital account of Balance of payment is related to

(a) Financial Transaction 

(b) Commodity transaction

(c) Both (a) & (b) 

(d) None of the above

16. Accommodating transaction is also known as

(a) Above line transactions

(b) Below line transactions 

(c) Both (a) & (b) 

(d) None of the above

17. Tariffs are most common instruments of

(a) Commercial policy of government 

(b) Monetary policy of government

(c) Fiscal policy of government

(d) None of the above

18. Imposition of tariffs raises

(a) Prices of exported goods

(b) Prices of imported goods

(c) Prices of exported and imported goods

(d) None of the above

19. Foreign exchange refers to

(a) Exchange of gains

(a) Exchange of money or credit internationally

(c) Exchange of gold between two countries

(d) None of the above

20. The most important of non tariff trade barriers are

(a) Quotas

(b) Pollutions standards

(c) Health regulations

(d) Labelling and packaging regulations

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