International Finance And Treasury - Study Mode

[#481] Differences in nominal interest rates are removed in exchange rate is
Correct Answer

(A) Fisher effect
(E) fisher effect

[#482] An Indian company is importing machine at a price of $ 5,00,000, payable after six month. The current exchange rate is Rs. 63 US $. The forward contract for six months is available @ Rs. 64 per US $. If the rate turns out to be Rs. 64.25 per US $, the net gain to the importer in case he has entered into contract will be
Correct Answer

(A) $ 1,25,000

[#483] The sources of finance for an international financial manager are
Correct Answer

(D) all of the above

[#484] Which of the following statement is correct when it is given a home country and a foreign country, purchasing power parity suggests that
Correct Answer

(C) the home currency will depreciate if the current home inflation rate exceeds the current foreign inflation rate

[#485] Bid quote is for
Correct Answer

(B) buyer

Explanation

Solution: Bid quote is for buyer. The bid price represents the maximum price that a buyer is willing to pay for a share of stock or other security.