International Finance And Treasury - Study Mode

[#381] Not a currency but basically a component of account of
Correct Answer

(B) special drawing rights

Explanation

Solution: Not a currency but basically a component of account of special drawing rights. Special drawing rights (SDR) refer to an international type of monetary reserve currency created by the International Monetary Fund (IMF) in 1969 that operates as a supplement to the existing money reserves of member countries.

[#382] Current Account in BOP characterize summary of stream of funds between particular country and all other country due to
Correct Answer

(B) purchase of goods and services

Explanation

Solution: Current Account in BOP characterize summary of stream of funds between particular country and all other country due to purchase of goods and services. The current account on the balance of payments measures the inflow and outflow of goods, services, investment incomes and transfer payments. The main components of the current account are: Trade in goods (visible balance) Trade in services (invisible balance), e.g. insurance and services.

[#383] Bank for International Settlements Start working in
Correct Answer

(A) 1930

Explanation

Solution: Bank for International Settlements Start working in 1930. It is the oldest global financial institution and operates under the auspices of international law.

[#384] Political hazard is related to danger of loss of worth due to
Correct Answer

(A) Government or Public actions

Explanation

Solution: Political hazard is related to danger of loss of worth due to Government or Public actions. Political risk is the risk of financial, market or personnel losses because of political decisions or disruptions.

[#385] Which of following is not a means in which agency troubles can be lessen through corporate rule?
Correct Answer

(C) Acquisition of a foreign subsidiary

Explanation

Solution: Acquisition of a foreign subsidiary is not a means in which agency troubles can be lessen through corporate rule.