International Finance And Treasury - Practice Test

[#406] Net exports refers to.

(A) total exports minus total imports

(B) total imports minus total exports

(C) exports of merchandise minus imports of merchandised

(D) total exports of capital minus depreciation

Correct Answer

(A) total exports minus total imports

Explanation

Solution: Net exports refers to total exports minus total imports. Net exports are the value of a country's total exports minus the value of its total imports. It is a measure used to aggregate a country's expenditures or gross domestic product in an open economy.

[#407] Which of the following is not considered a unilateral transfer?

(A) foreign aid from one government to another

(B) income earned from foreign investments

(C) personal gifts to friends in foreign countries

(D) donations to foreign countries from non-government

Correct Answer

(B) income earned from foreign investments

Explanation

Solution: Income earned from foreign investments is not considered a unilateral transfer. A unilateral transfer is a one-way transfer of money, goods, or services from one country to another. The prefix "uni" means one. In a unilateral transfer, one party is making a transfer to the other party.

[#408] 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.

(A) Both statements are correct

(B) Both statements are incorrect

(C) Statement I is correct and Statement II is incorrect

(D) Statement II is correct and Statement I is incorrect

Correct Answer

(A) Both statements are correct

[#409] 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.

(A) buying, buying

(B) selling, buying

(C) selling, selling

(D) buying, selling

Correct Answer

(D) buying, selling

[#410] 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.

(A) Both statements are correct

(B) Both statements are incorrect

(C) Statement I is correct, but Statement II is incorrect

(D) Statement II is correct, but Statement I is incorrect

Correct Answer

(B) Both statements are incorrect

International Finance And Treasury - Study Mode

[#406] Net exports refers to.

Correct Answer

Explanation

[#407] Which of the following is not considered a unilateral transfer?

Correct Answer

Explanation

Correct Answer

[#409] 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.

Correct Answer

[#410] 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.

Correct Answer