International Finance And Treasury - Study Mode

[#241] IMF is firm of
Correct Answer

(A) 190 Member Countries

Explanation

Solution: The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 190 member countries, with headquarters in Washington, D.C.

[#242] In a quote exchange rate, the currency that is to purchase with another currency is called
Correct Answer

(D) Base currency

Explanation

Solution: In a quote exchange rate, the currency that is to purchase with another currency is called Base currency. The base currency – also called the transaction currency is the first currency appearing in a currency pair quotation, followed by the second part of the quotation, called the quote currency or the counter currency.

[#243] Which of the following theories suggests that firms seek to penetrate new markets over time?
Correct Answer

(C) Product cycle theory

Explanation

Solution: Product cycle theory suggests that firms seek to penetrate new markets over time. The International Product Life Cycle Theory was authored by Raymond Vernon in the 1960s to explain the cycle that products go through when exposed to an international market. The cycle describes how a product matures and declines as a result of internationalization.

[#244] US Dollar denominated bond issued in US domestic Market
Correct Answer

(A) Yankee Bond

Explanation

Solution: Yankee Bond is the US Dollar denominated bond issued in US domestic Market. Yankee bonds are registered & monitored by Securities & Exchange Commission (SEC). These bonds are usually issued by foreign banks, corporations & government.

[#245] Slightest hazardous method by which organizations carry out international trade is
Correct Answer

(C) International Trade

Explanation

Solution: Slightest hazardous method by which organizations carry out international trade is International Trade. International trade is the exchange of goods and services between countries. Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries, or which would be more expensive domestically.