International Finance And Treasury - Study Mode

[#611] The forward exchange rate __________
Correct Answer

(B) is the rate today for exchanging one currency for another at a specific future date

Explanation

Solution: The forward exchange rate is the rate today for exchanging one currency for another at a specific future date. Forward exchange rate is the exchange rate at which a party is willing to enter into a contract to receive or deliver a currency at some future date.

[#612] The spot exchange rate __________
Correct Answer

(A) is the rate today for exchanging one currency for another for immediate delivery

Explanation

Solution: The spot exchange rate is the rate today for exchanging one currency for another for immediate delivery. The spot exchange rate is the amount one currency will trade for another today. In other words, it's the price a person would have to pay in one currency to buy another currency today. You could also think of it as today's rate that one currency can be traded with another.

[#613] Which organisation of the World Bank Group deals with matters related to the development of the poorest countries in the world?
Correct Answer

(B) The International Development Association

Explanation

Solution: The International Development Association of the World Bank Group deals with matters related to the development of the poorest countries in the world. The International Development Association (IDA) is the part of the World Bank that helps the world’s poorest countries. Overseen by 173 shareholder nations, IDA aims to reduce poverty by providing loans (called “credits”) and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.

[#614] India s foreign exchange rate system is?
Correct Answer

(B) Managed float

Explanation

Solution: In India, the exchange rate system is managed floating (from 1994 onwards) and hence the relevant currency movements are appreciation and depreciation. Here, the exchange rate is determined in the open market through the pressure of buying and selling of foreign currencies.

[#615] The index of Financial Inclusion has been launched for the first time in 2008
Correct Answer

(D) Indian Council for Research on International Economic Relations (ICRIER)

Explanation

Solution: The index of Financial Inclusion, Indian Council for Research on International Economic Relations (ICRIER) has been launched for the first time in 2008. The IFI developed here incorporates information on various dimensions of an inclusive financial system and it is easy to compute. This study is part of a major research project on “Financial Inclusion” under the auspices of the Financial Sector Research Programme (FSRP) at ICRIER.