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112 Cards in this Set
- Front
- Back
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The world's mejor trading currencies, which are all free to float against each other, include all of the following except _ _ _ _ _ |
Spanish peso |
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Nations that have major economic expansion attract _ _ _ _ _ |
FDI |
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IMF stands for _ _ _ _ _ |
International monetary fund |
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In the foreign exchange market, the _ _ _ _ _ of one country is traded for the _ _ _ _ _ of another country. |
Currency, Currency |
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Systematic record of economic transactions of a country during a given period of time is _ _ _ _ _ |
BOP |
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Fund based services includes all of the following except _ _ _ _ _ |
M&A services |
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_ _ _ _ _ deals with the global rules of trade between nations |
WTO |
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The exchange rate is the _ _ _ _ _ |
Price of one country's currency expressed in terms of another country's currency |
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Current account includes all of the following, except _ _ _ _ _ |
FDI |
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Reserves are held in following forms, except _ _ _ _ _ |
Silver |
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Statistical residue is a part of _ _ _ _ _ |
Errors and Omissions |
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Difference between the value of merchandise exports and imports is _ _ _ _ _ |
BOT |
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Sale or purchase of gold in BoP is covered under _ _ _ _ _ |
Official reserve account |
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SDR is an international reserve assets, created by _ _ _ _ _ |
IMF |
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FDI in BoP is covered under _ _ _ _ _ |
Capital account |
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FDI stands for _ _ _ _ _ |
Foreign Direct Investment |
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Under _ _ _ _ _ monetary unit is associated with the value of circulating gold coins. |
Gold specie |
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Bretton Woods is a town in _ _ _ _ _ in US. |
Hampshire |
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Under _ _ _ _ _ there is no interference of monetary authorities to decide exchange rate |
Floating |
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G-10 countries included all of the following except _ _ _ _ _ |
China |
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In Smithsonian Agreement the variation zone was increased from 1% to _ _ _ _ _ |
2.25% |
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Establishing a fixed exchange rate between one national currency and another is called the _ _ _ _ _ Peg of currency |
Hard |
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In _ _ _ _ _ President Nixon announced that dollar would no longer be convertible into gold |
1971 |
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During BWS, value of USD was fixed at 1 ounce gold is equal to USD _ _ _ _ _ |
35 |
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Euro is the official currency of _ _ _ _ _ number states |
19 |
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In spot market, exchange of currencies take place on _ _ _ _ _ |
T+2 |
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An account which is held within a domestic country by a foreign bank, in the currency of domestic country _ _ _ _ _ |
Vostro |
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The quote 1 GBP = RS 99.85 is a direct quote for _ _ _ _ _ |
India |
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SBI account with HSBC in UK is an example of _ _ _ _ _ |
Nostro |
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Spot rate is also called as _ _ _ _ _ |
Current market price |
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Inverse quote for 1 GBP = 99.1100/9900 is "INR GBP _ _ _ _ _ |
0.0100/0.0101 |
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If USD SGD 1.5423/33 ; SGD GBP 0.3323/33 ; GBP USD quotation is _ _ _ _ _ |
1.9441/512 |
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Inverse quote for USD/DKK 5.7935-5.8085 is _ _ _ _ _ |
DKK/USD 0.1722-0.1726 |
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In Holgate principle, if Bid > Ask, swap points for forward rate are tobe _ _ _ _ _ |
Subtracted |
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_ _ _ _ _ is the smallest unit by which a currency quotations can change |
PIP |
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_ _ _ _ _ deal in currencies to benefit from movements in currencyexchange markets. |
Speculators |
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Currently the largest foreign exchange market in the world is_ _ _ _ _ |
London |
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_ _ _ _ _ is a real-time gross settlement funds transfer system operated by the United States Federal Reserve Banks. |
Fedwire |
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Spot USD INR 60 and six months forward is USD INR 61. AFM is _ _ _ _ _ |
3.33% |
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SWIFT stands for |
Society for Worldwide Interbank Financial Telecommunication |
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_ _ _ _ _ is a market where foreign currencies are bought and sold. |
Capital Market |
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_ _ _ _ _ theory states that the exchange rate between two countries should be equal to the ratio of the countries' price levels. |
PPP |
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Money market instruments include all the following, except _ _ _ _ _ |
Equity shares |
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In quote of 1$ = Rs. 61, _ _ _ _ _ is a home country. |
India |
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If USD/CAD 1.1630, 3 months forward 1.1675. Annualized Interest rate CAD 6%, USD 4%. Arbitrage gain will be _ _ _ _ _ |
1087 |
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PPP theory government _ _ _ _ _ _ intervention. |
Ignores |
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_ _ _ _ _ theory states that exchange rate between two currencies is directly affected by their interest rates |
IRP |
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_ _ _ _ _ theory states that the percentage change in the spot exchange rate over time is governed by the difference between the nominal interest rate for the two currencies. |
Fisher's |
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If Formula I of Fisher's effect is positive, Borrow _ _ _ _ _ , Invest _ _ _ _ _ |
Home, Foreign |
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_ _ _ _ _ is a standardized contract to exchange one currency for another at a specified date in the future at a price (exchange rate) thatis fixed on the purchase date. |
Futures contract |
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The _ _ _ _ _ requires that an upfront margin to trade on an exchange. |
Currenciy futures |
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Which of the following is false? |
Futures contracts are more liquid than forward contracts. |
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Which of the following does the most to reduce default risk for futures contracts? |
Marking to Market |
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Foreign currency forward market is: |
An over the counter unorganized market |
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Which of the following financial instruments is primarily transfer risk? |
Futures contract |
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Application of Currency Futures includes |
Hedging, speculators, Arbitrage |
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An option giving the buyer of the option the right but not the obligation to buy a currency is _ _ _ _ _ |
Call Option |
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Regulation _ _ _ _ _ of Federal Reserve Act imposed a ceiling oninterest rates that could be paid on deposits by banks in the US. |
Q |
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_ _ _ _ _ Bond is issued in a local market by a foreign borrower, denominated in local currency. |
Foreign |
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Types of Euro Bonds include all of the following, except _ _ _ _ _ Bonds. |
Yankee Bonds |
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_ _ _ _ _ are the debt instruments with a coupon that changes periodically accordingly to some predetermined interest rate benchmark. |
Floating rate notes |
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Euro Currency market is utilized by _ _ _ _ _ |
(a) Banks (b) MNCs (c) Mutual Funds |
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Regulation _ _ _ _ _ of Federal Reserve Act stipulated reserves to be maintained against deposits accepted by banks in the US. |
M |
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_ _ _ _ _ Bond is issued locally by a domestic borrow, usually denominated in local currency. |
Foreign |
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_ _ _ _ _ once issued bonds with coupon rates tied to its financial performance. |
Walt Disney |
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_ _ _ _ _ is a type ot security listed on Lunetnoourg |
GDR |
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Required Return from an investment = |
Risk Free Return + Risk Premium |
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IPO stands for _ _ _ _ _ |
Initial Public Offering |
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An unsponsored ADR, _ _ _ _ _ |
Trades in OTC market |
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_ _ _ _ _ was introduced at a time when forex reserves of thecountry were low |
FERA |
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As per FEMA, no person, other than _ _ _ _ _ would enter in any transaction of the foreign currency. |
Authorized Dealer |
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The monetary penalty payable under FERA, was nearly _ _ _ _ _ times the amount involved |
Five |
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_ _ _ _ _ implies an investment made with an intent of obtaining an ownership stake in an enterprise domiciled in a country by an enterprise situated in some other country |
FDI |
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RBI has granted licences to certain established firms, hotels and otherorganisations permitting them to deal in foreign currency notes, coinsand travellers cheques. They are termed as _ _ _ _ _ |
Authorized Money Changers |
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FEDAI stands for _ _ _ _ _ |
Foreign Exchange Dealers Association of India |
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_ _ _ _ _ can authorize a person/company to deal in foreign exchange. |
RBI |
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Forex markets includes all of the following, except _ _ _ _ _ |
None of these |
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If Two banks are quoting the following GBP rates: Bank A: Rs. 78.9810-79.1110 and Bank B: Rs. 79.0110-79.2350. The arbitrage opportunity will be _ _ _ _ _ |
0 |
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If Quote of Bank ABC is EUR INR 68.00/30 and Quote of Bank PQR is INR EUR 1.4550/1.4600, arbitrage opportunity will be _ _ _ _ _ |
2828 |
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Effect of falling domestic exchange rate: |
Reduce probability for importers |
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_ _ _ _ _ refers to the size or scope of potential loss. |
Exposure |
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_ _ _ _ _ risk is also called as 'Accounting exposure'. |
Translation |
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Internal techniques of managing forex risk includes all of the following, except _ _ _ _ _ |
Forward and future contracts |
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When a company has receipts and payments in the same foreign due at of the same time, it can use _ _ _ _ _' technique currency managing forex risk. |
Matching |
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An investor looking at reducing his risk is known as _ _ _ _ _ |
Hedger |
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_ _ _ _ _ is a tax levied on passive income earned by an individual or corporation of one country within the tax jurisdiction of another country. |
Withholding tax |
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_ _ _ _ is also known as secrecy jurisdiction |
Tax hevan |
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A strategy used to reduce tax liabilities by pricing goods and services within a group structure in a way that it does not reflect the arm's length transaction. |
Transfer pricing |
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_ _ _ _ _ is a tax avoidance technique whereby multinational subsidiaries are financed primarily by debt from the parent company |
Thin Capitalization |
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Globalization means the phenomenon of _ _ _ _ _ |
(a) Sourcing capital and people from where it is best available (b) Producing where it is most cost effective (c) Selling where the demand and markets are |
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_ _ _ _ _ is the criterion that the taxable income is taxed in thesame manner by the taxpayers national tax authority regardless ofwhere in the world it is earned. |
National neutrality |
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Subtraction method is frequently followed for _ _ _ _ _ taxation system. |
VAT |
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Tax havens include all of the following, except _ _ _ _ _ |
India |
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_ _ _ _ _ analysis implies the study of confirming the adequacy of proposed plant and equipment. |
Technical analysis |
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_ _ _ _ _ analyses if the benefits from the project will justify the project cost or investment done. |
Economic analysis |
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In the _ _ _ _ _ method, the revenues and costs of a project are estimated and then are discounted and compared with the initial investment. |
NPV |
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Project investments are irreversible as there is always a certain unrecoverable _ _ _ _ _ cost. |
Sunk |
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If the project involves a lot of • uncertainty,_ _ _ _ _ is the best capital budgeting technique to be used. |
Real option |
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All the following features of real option are correct, except _ _ _ _ _ |
Low information is required for making capital investment decision |
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International finance is an important tool |
TO find the exchange rates, Corrurent inflation rates. Get an idea about in international debt æcurities, |
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Factors responsibe for Globalization Of worlde of econany are — |
a) Increase in Trans- national Trade b) General Agreement on Tariffs and Trade (GATT) c) World Trade Organisation (WTO)) |
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IFRS Stands for _ _ _ _ _ |
International Financial Reporting Standards |
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Scope of International finance includes - |
a) International Financial Economics: b) International Finanancial Management c) International Financial Markets |
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Importance of International Finance includes |
a) Determination Of relative values of currencies b) International investment decision c) Use of IFRS |
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The international financial manager needs to addres the following issues - |
None of the above |
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Trade restriction is called as - |
Trade barrier |
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International help the governments to _ _ _ _ _ higher growth rate of the econotny, increase the total and per capia GDP, industrial growth, employment and income levels. |
Achieve |
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_ _ _ _ _ refers to the price of one currency against another currency |
Exchange rate |
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Level _ _ _ _ _ ADR's must comply Witn various SEC rule i; tull registration and reporting requirements ot SEC |
III |
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ADRs are denominated in _ _ _ _ _ currency |
US $ |
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In ADR'GDR process, _ _ _ _ _ tssues the Depository Receipts Forejgn Markets |
Depository Bank |
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The Dow Jones Industrial Avorago largest and most (DJIA) contains _ _ _ _ _ influential companios (bluo chip companies) in the US |
30 |
