III BA ENGLISH FOR GLOBAL BUSINESS CONTEXT [ ] SEMESTER V BUSINESS FINANCE AND MODERN BANKING-514U1 Multiple Choice Questions.

Transcription

1 1 of 36 8/7/2015 1:30 PM Dr.G.R.Damodaran College of Science (Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Reaccredited at the 'A' Grade Level by the NAAC and ISO 9001:2008 Certified CRISL rated 'A' (TN) for MBA and MIB Programmes III BA ENGLISH FOR GLOBAL BUSINESS CONTEXT [ ] SEMESTER V BUSINESS FINANCE AND MODERN BANKING-514U1 Multiple Choice Questions A cheque dated subsequent to the date of its issue is. A. post dated cheque B. blank cheque. C. crossed cheque D. account payee cheque 2. A cheque date before the date of its issue is. A. a. ante dated cheque B. b. full worth cheque C. c. preemptive cheque D. d. worth cheque. 3. A can also be a payee A. drawer B. paymaster. C. banker D. a. creditor. 4. The word 'Bank' has been derived from a Latin word which means. A. a. a bench for the keeping, lending and exchanging etc. of money. B. a. an institution for meeting people. C. a. place, where persons can relax. D. an institution for coordinating people 5. The first joint stock bank was established at Calcutta by the name of. A. Bank of Hindustan. B. Reserve Bank of India. C.. Indian Bank. D. a. Central Bank of India 6. Who controls credit in India? A.. Government of India.

2 2 of 36 8/7/2015 1:30 PM B. a. RBI C. b. SBI. D. b. Indian bank. 7. RBI grants for agricultural purposes. A. a. only short term finance. B. a. medium and long term finance. C. a. short and medium term finance only. D. a. short, medium and long term finance 8. Development banks are institutions which. A. give development loans B. provide emergency loans of banks. C. are subsidiaries of RBI.. D. provide term finance to industries The entire issued capital of IDBI is held by. A. central government B. RBI C. State bank of India & Reserve bank of India. D. jointly by Central government, RBI and Commercial banks 10. LIC was set up in. A B C D ICICI was incorporated in. A B C D Negotiable instruments are defined under. A. Section 52 of the Banking regulation act, B. a. Section 25 of the Reserve bank of India act, C. a. Section 13 of the Negotiable instruments act, D. a. Section 14 of the companies act, Who is primarily liable on a promissory note? A. Holder. B. Maker. C. Drawee.

3 3 of 36 8/7/2015 1:30 PM D. Endorser. 14. A Cheque is always payable on. A. demand. B. a specified future date. C. the last day of the grace. D.. the will of the paying banker 15. A promissory note. A. a. can be drawn in sets. B. a. cannot be drawn in sets. C. a. indemnity bond is also necessary. D. a. indemnity bond is not necessary. 16. In a promissory note the words 'or order' are. A. necessary to insert. B. b. not necessary to insert. C. b. not necessary but it is usual to insert. D. b. necessary it is usual. 17. In a bill of exchange, drawee is the person. A. who draws the bill. B. on whom the bill is drawn. C. to whom the payment of the bill is to be made. D. to whom the payment of the bill is not to be made. 18. Bill of exchange can be drawn payable. A. to bearer on demand. B. either on demand or after a fixed time. C. to bearer in presence. D. to bearer not in presence. 19. Until a bill of exchange is accepted, primary liability there on is that of. A. Payee. B. Drawee. C. Drawer D. Acceptor. 20. A bill of exchange is drawn for a maximum period of. A. 90 days. B. 120 days. C. 180 days. D. 360 days.

4 4 of 36 8/7/2015 1:30 PM 21. A saving bank a/c in the sole name of a minor can be opened provided he completes. A. 10 years of age. B. 12 years of age. C. 18 years of age. D. 13 years of age. 22. Expansion of HDFC. A. Housing Development Finance Corporation. B. Housing Development Finance Company. C. Housing Development Finance Co-operative. D. Housing Development Finance Community. 23. Negotiable gives to the transferee. A. the same title. B. no title. C. no better title. D. better title. 24. is a dead cheque. A. Post dated cheque. B. Stale cheque C. Ante dated cheque. D. Pre dated cheque. 25. RBI refers to. A. Reserve Bank of India. B. Revenue Bank of India. C. Rupee Bank of India D. Regional Bank of India 26. In India the negotiable instrument are governed by the negotiable instrument act of 1881 under. A. Section 23 B. Section 13 C. Section 3 D. Section Name the person to whom the amount of the cheque is payable? A. Drawer B. Payee C. Drawee D. Acceptor

5 5 of 36 8/7/2015 1:30 PM 28. Which is a private bank? A. SBI B. UTI C. IOB D. Indian bank 29. The best suited deposit for trading community is. A. Savings deposit B. Current deposit C. Fixed deposit D. RD 30. headed the committee on Computerization in Indian banks (1988). A. M. Narasimhan B. M.M. Shah C. M. Venkat Ram D. Raj Foster 31. The most liquid asset is. A. gold B. bill of exchange C. government bonds D. cash 32. The rate of interest payable on various deposits is determined by the. A. head office of each bank B. RBI. C. Indian bank D. central bank 33. The right of set - off is nothing but a. A. right to sell B. right to retain C. right to combine D. right to appropriate 34. Capacity of the borrower is determined by. A. willingness to repay B. viability of the project C. managerial ability D. Administrative ability 35. Discounting of bills of exchange is. A. clean advance

6 6 of 36 8/7/2015 1:30 PM B. secured advance C. neither clean advance nor secured advance D. un secured advance 36. In case of guarantee there are. A. 3 contracts B. 2 contracts C. 4 contracts D. 5 contracts. 37. Expand NEFT. A. National Electronic Fund Transfer B. Neutral Electronic Fund Transfer C. Nominal Electronic Fund Transfer D. Natural Electronic Fund Transfer 38. Expand EFT. A. Electronic Fund Transfer B. Economic Fund Transfer C. European Fund Transfer D. Electric Fund Transfer 39. The apex institution in agricultural finance is. A. NABARD B. EXIM bank C. RBI D. IDBI 40. KYC means. A. know your customer B. know your creditor C. know your cost D. know your card 41. The first bank in India to be given an ISO certificate. A.. SBI B. central bank of India C. Indian bank D. Canara bank 42. The first Indian bank to open branch outside India A. Bank of India B. Allahabad bank C. south Indian bank

7 7 of 36 8/7/2015 1:30 PM D. Indian bank 43. RTGS stands for A. Real Time Gross Settlement B. Real Turn Gross Settlement C. Real Technique Gross Settlement D. Real Towards Gross Settlement 44. The head office of a bank is responsible for. A. only Bank level planning B. only Bank level planning, control functions C. bank level planning, control functions and policy decision D. only services to the branches 45. UPS means. A. Uninterrupted Power System B. Under Power System C. Unified Power System D. Unitech Power System 46. Core banking is a branch computerization model A. decentralized B. centralized C. unified D. ATM 47. ATMs are primarily used for performing the functions A. infrastructure B. computer based C. banking D. hospitalized 48. In early 1990s, which type of ATMs makes their appearance in India? A. Multi user ATM B. Network ATM C. Branch ATM D. Stand-alone ATMs 49. During the customer transaction, the key which is used to validate by the ATM is. A. Personal Identification Number B. Personal Account Number C. Personal Integer Number D. Personal Introduction Number

8 8 of 36 8/7/2015 1:30 PM 50. ECS means A. Electronic Clearing system B. Electronic centered system C. Electronic cross systems D. Electronic conversion systems 51. EFT is introduced by. A. IRDA. B. RBI. C. SEBI. D. NSE. 52. is a technology that allows you to access your bank account from a mobile device. A. Home banking. B. Mobile banking C. Internet banking. D. Television 53. is the result of combining technology and traditional bank services through websites that customers use to access their bank accounts. A. Home banking B. Mobile banking. C. Internet banking. D. Television banking 54. The banking operations are carried through a single banking office is. A. branch banking B. unit banking C. commercial banking D. universal banking 55.. The banking operations are carried through a network of branches are called. A. branch banking B. unit banking C. commercial banking D. universal banking 56. The banking system which combines commercial banking with investment banking is known as. A. branch banking B. mixed banking C. commercial banking D. universal banking

9 9 of 36 8/7/2015 1:30 PM 57. Which banking is now referred as universal banking? A. branch banking B. mixed banking C. commercial banking D. universal banking 58. The banking which attracts deposits and lending for only short periods is known as. A. commercial banking B. unit banking C. branch banking D. development banking 59. Deposit banking is also called as. A. commercial banking B. unit banking C. branch banking D. development banking 60. In India every scheduled bank has to maintain with RBI a cash balance equivalent of all the deposit liabilities called as. A. open market ratio B. cash reserve ratio C. bank reserve ratio D. credit reserve ratio 61. Imperial bank of India is now called as. A. central bank B. State Bank of India C. Indian Overseas Bank D. Bank of India 62. In the year 1969, banks were nationalized in india A. 15 B. 14 C. 16 D During 1980, how many banks were nationalized? A. 7 B. 6 C. 5 D Which committee recommended the establishment of private sector banks in India?

10 10 of 36 8/7/2015 1:30 PM A. Dr. Rangarajan committee. B. Narashimham committee. C. Rajendran committee. D. Govindarajan committee. 65. RBI was set up in the year. A B C D has been constituted as a corporate body having perpetual succession and a common seal. A. RBI B. ICICI C. HDFC D. IOB 67. The Indian is the market in which short term funds are borrowed and lent A. Money market B. Open market C. Closed market D. Credit market 68. A is the market for short term bills which are generally of 3 months duration A. Bill market. B. Money market. C. Credit market. D. Open market. 69. The deposit with the bank for a fixed period which is specified at the time of making the deposit is called. A. saving deposit B. current deposit. C. bank deposit. D. fixed deposit. 70. The minimum period for which a commercial bank can accept term deposit is. A. 7 days. B. 15 days C. 30 days. D. 60 days. 71. The legal status of a nominee is that. A. he becomes absolute owner of the amount

11 11 of 36 8/7/2015 1:30 PM B. he becomes co-owner with the legal heirs. C. he cannot recover, the amount. D. he is entitled to receive payment from the bank, but the claim of the legal heirs of the deceased depositor remaining unaffected. 72. Interest on fixed deposits is compounded. A. monthly B. quarterly C. half yearly D. yearly basis 73. A banker should not stop operation of the account if the customer. A. dies B. becomes insolvent C. changes his business premises D. becomes insane 74. From April 1, 2010 interest on savings bank accounts are calculated on the basis of A. daily closing balance basis B. minimum amount held in a month. C. minimum amount held in the second fortnight of a month. D. minimum balance held in a month excluding the first ten days. 75. Floating rate of interest is the rate which is. A. decided by the bank arbitrarily. B. linked with another relevant rate. C. fixed by the Indian banks association. D. notified by the reserve bank of India. 76. A person remains minor until he completes years of age. A. 15 B. 18 C. 20 D MICR refers to. A. Magnetic Ink Character Recognition. B. Magnetic Ink Company Recognition. C. Magnetic Ink Cross Recognition. D. Magnetic Ink Community Recognition. 78. If the endorser signs his name only, the endorsement is said to be. A. endorsement in blank. B. endorsement in full.

12 12 of 36 8/7/2015 1:30 PM C. conditional endorsement. D. restricted endorsement. 79. Addition to his signature, the endorser adds a direction to pay the amount mentioned in the instrument is said to be. A. endorsement in blank. B. endorsement in full. C. conditional endorsement. D. restricted endorsement. 80. The paying banker who makes cash payment of a cross cheque at the counter shall be liable for the loss of. A. drawer of the cheque. B. true owner of the cheque. C. collecting banker. D. the first endorser. 81. A cheque with 'Not negotiable' crossing. A. cannot be negotiated. B. can be negotiated and the endorsee title is not affected in any case. C. can be negotiated but the holder of the cheque will not have title better than that of the person from whom he took it. D. is always deemed as crossed specially. 82. Who can cancel the crossing on a cheque? A. The payee. B. The paying banker. C. The endorser. D. The drawer. 83. Which is not possible for the payee of a cheque? A. To convert a bearer cheque into an order cheque. B. To convert an open cheque in to a crossed cheque. C. To convert general crossing into special crossing. D. To make a specially crossed cheque into generally crossed cheque. 84. Who can countermand the payment of a cheque? A. The payee. B. The drawer. C. The drawee. D. The endorsee 85. Which of the following does not amount to material alteration on a cheque? A. Changing the date of the cheque.

13 13 of 36 8/7/2015 1:30 PM B. Replacing the name of the payee by another name. C. Conversion of 'order' into 'bearer'. D. Conversion of 'bearer' into 'order' 86. REPO facility means. A. borrowing of money without security. B. borrowing on the basis of guarantee C. borrowing against term loans. D. borrowing against securities on repurchase basis. 87. In case of collateralized borrowing and lending obligations (CBLS) transfer of securities takes place through. A. RBI. B. SBI C. CCIL D. Directly 88. Non-SLR securities do not include. A. mutual fund units. B. commercial papers. C. corporate shares. D. corporate fixed deposits. 89. Aggregate capital market exposure for banks is prescribed as 40 % of. A. net worth. B. aggregate time and demand liabilities C. total investments. D. total assets of a banking company 90. For issuing commercial paper the issuer company must have the tangible net worth of. A. Rs. 2 crore. B. Rs. 4 crore. C. Rs. 5 crore. D. Rs. 10 crore. 91. Investment fluctuation reserve is required to be created equal to 5% of. A. total investments B. total investments in held to maturity category. C. total Non-SLR investment. D. total investments in Held for trading and available for sale categories 92. Expand SBI. A. State Bank of India. B. Securities Bank of India.

14 14 of 36 8/7/2015 1:30 PM C. Stock Broking of India. D. Society Bank of India. 93. A negotiable instrument drawn or make in India is called instrument. A. inland. B. foreign. C. time. D. clean 94. A negotiable instrument not drawn or make in India is called instrument. A. inland. B. foreign. C. time. D. clean 95. The exposure limit prescribed by RBI for credit granted by a commercial bank to single borrower is 15% of its. A. aggregate deposits. B. capital funds. C. total assets. D. total advances. 96. A term loan is not secured by. A. legal mortgage of fixed assets. B. pledge of goods. C. hypothecation of movable assets equitable mortgage. D. equitable mortgage. 97. A drawee bill is a bill which is. A. drawn on an unknown drawee. B. discounted at the instance of drawee. C. not eligible for discounting. D. payable on demand by the drawee. 98. For issuing a duplicate demand draft, the purchaser is required to submit? A. Guarantee of a third party. B. Collateral security. C. Indemnity bond. D. Undertaking from the payee. 99. The relationship between the hirer of a locker and banker is that. A. principal and agent. B. lessee and lessor. C. debtor and creditor.

15 15 of 36 8/7/2015 1:30 PM D. pledge and pledger A debit card holder makes payment for purchases. A. After 15 days. B. After 20 days. C. After a month. D. Immediately through his account A banker is presented three cheques drawn on an account at the same time. Will it make payment of the cheques? A. According to the serial number of the cheque. B. According to the amount of cheque C. In chronological order of receipt of cheque. D. According to the number An appeal against the order of the National commission may be preferred to. A. the high court of the state concerned. B. the supreme court. C. the debt recovery appellate tribunal. D. the ministry of consumer affairs, government of India Membership of a credit information company is not mandatory for. A. private sector bank. B. an urban cooperative bank C. housing finance company. D. another credit information company Credit information report contains. A. recommendation. B. a guarantee about repayment. C. for taking credit decisions. D. for underwriting the shares of the borrower 105. IDBI A. Industrial Development Bank of Ireland B. Institutional Development Bank of India C. Industries Development Bank of India D. Industrial Development Bank of India 106. NABARD refers to. A. National Bank for Agriculture and Rural Development. B. National Bank for Agriculture and Revised Development C. National Bank for Agriculture and Regional Development. D. National Bank for Agriculture and Road Development.

16 16 of 36 8/7/2015 1:30 PM 107. Drawing of two parallel transverse lines on the face of the cheque is called. Drawing of two parallel transverse lines on the face of the cheque is called. A. general crossing. B. special crossing. C. upper crossing. D. lower crossing Addition of the name of a banker across the face of a cheque is called as A. general crossing. B. special crossing C. upper crossing. D. lower crossing If the crossing on a cheque is cancelled, it is called as. A. Closing of the crossing. B. Opening of the crossing. C. Special crossing. D. General crossing Who is the present chairman of SEBI? A. Chandrasekhar Bhaskar Bhave. B. Bajpai C. Gopalakrishnan. D. Govindarajan Who is the governor of RBI? A. Dr. D. Subbarao. B. Smt. Shyamala gopinath. C. Smt Usha. D. Dr. K. S. Chakraborty Banking regulation act A B C D ICICI means A. Industrial Credit and Investment Corporation Of India. B. Industrial Credit and Investment Company Of India. C. Industrial Credit and Investment Co-operation Of India. D. Industrial Credit and Insurance Corporation Of India

17 17 of 36 8/7/2015 1:30 PM 114. CIBIL as a credit bureau caters to A. consumer segments. B. consumer segments C. both commercial and consumer segments. D. banking segment The relationship between a banker and a customer is. A. that of a debtor and creditor. B. that of a creditor and a debtor. C. primarily that of a debtor and a credit. D. that of a debtor and agent The banker has a lien on. A. bonds given for collection. B. bonds given for safe custody. C. bonds left by mistake. D. bonds given for safe To constitute a person as a customer A. there must be frequency of transactions. B. there must be a dealing of a banking nature. C. there must be some sort of an account. D. there must be a single transaction of any nature The banker has a statutory obligation to. A. honor customers cheques B. exercise lien. C. maintain secrecy of his customers accounts. D. honor customers bills The following one is a negotiable instrument, negotiable by usage or custom A. Bill of Exchange. B. Accommodation Bill. C. Promissory Note. D. Share warrant In the case of a negotiable instrument, the following person generally gets a good title A. Finder of the lost instrument. B. Holder of a stolen instrument. C. Holder in due course. D. Holder of a forged instrument The reasonable period allowed in India for the presentation of a cheque is.

18 18 of 36 8/7/2015 1:30 PM A.. 1 Year. B. 3 months. C. 9 months. D. depending upon banking custom The document which can be used only for making local payment is. A. a cheque. B. a bill of exchange. C. a bankers cheque. D. a draft Crossing a cheque without the knowledge of the drawer is a case of. A. material alteration. B. immaterial alteration C. authorized alteration. D. unauthorized alteration The following one is not a material alteration. A. Alteration of crossing. B. Alteration of place of payment. C. Conversion of blank endorsement into full endorsement. D. Alteration of the payees name The paying banker can get protection for a materially altered cheque provided. A. the alteration is not apparent. B. he makes payment in due course. C. the alteration is immaterial. D. i & ii together A Not Negotiable crossing restricts of the cheque. A. transferability. B. negotiability. C. neither transferability nor negotiability. D. both transferability and negotiability Not negotiable crossing is a warning to the. A. paying banker. B. collecting banker. C. holder. D. banker The following one is absolutely essential for a special crossing. A. Two parallel transverse lines. B. Words And Company.

19 19 of 36 8/7/2015 1:30 PM C. Words Not Negotiable. D. Name of a banker The safest form of crossing is A. general crossing. B. special crossing. C. double crossing. D. a/c payee crossing A Cheque which is not crossed is called. A. uncrossed cheque. B.. open cheque. C. order cheque. D. bearer cheque An order cheque can be converted into a bearer cheque by means of. A. sans recourse endorsement. B. special endorsement. C. blank endorsement. D. sans frais endorsement Negotiability gives to the transferee title of the transferor. A. the same title. B. no title. C. no better title. D. better title Endorsement signifies that the. A. endorser has got a good title. B. endorsers signature is genuine. C. previous endorsements are genuine. D. All of the above One of the following endorsements is not a valid one. A. partial endorsement. B. restrictive endorsement. C. facultative endorsement. D. conditional endorsement The important delivery channel of E-banking is. A. home banking. B.. tele-banking. C. Internet banking. D. mobile banking.

20 20 of 36 8/7/2015 1:30 PM 136. The biggest constraint in E-banking is A. start-up cost. B.. maintenance cost. C. training cost. D. security cost Credit cards offer to the customer A. revolving credit for certain period. B. payoff the entire amount of card usage. C. on-line recover of amount of card usage. D. only amount The debit card offers. A. revolving credit for certain period. B. payoff the entire amount of card usage. C. on-line recover of amount of card usage. D. only amount The Charge card offers A. revolving credit for certain period. B. payoff the entire amount of card usage. C. on-line recover of amount of card usage. D. only amount which is not a functional activity through internet banking. A. withdrawal of cash anywhere in India. B. statement of account for a specific period. C. transfer of funds from one account to another account. D. balance enquiry Merchant bankers are. A. financial Brokers. B. financial Intermediaries. C. credit Appraisers. D. underwriters The activity related to Merchant banker's is A. equity and equity related finance B. debt and debt related finance. C. fund business. D. non-fund business.

21 21 of 36 8/7/2015 1:30 PM 143. Lien is a/an of the creditor to retain possession. A. Right. B. Obligation. C. Instrument. D.. Interest Banker's lien is an/a A. bailment of goods. B. implied pledge. C. agreement. D. an stoppage Right to combine two accounts by banks is called A. garnishee. B. lien. C. set-off. D. rating Mandate is a agreement. A. stamped. B. unstamped. C..memorandum. D. letter 147. A bank on whom a cheque is drawn by the customer is. A. collecting bank. B. paying bank. C. advising bank. D. issuing bank IFCI was established in. A B C D The Registered office of IFCI is located in A. Bombay. B. Madras. C. New Delhi. D. Kolkata Under the head of a committee was set up to study bank computerization A. Dr. C Rangarajan.

22 22 of 36 8/7/2015 1:30 PM B. Dr. C. Ragavendra. C. Dr. C. Raja rajan. D. Dr. C. Ramachandran Leading refers to. A. Advancing of receivables. B. Advancing of payables C. Advancing payments either receivables or payables. D. Advancing of receivables and delaying of payables Purchasing-power parity (PPP )refers to. A. the concept that the same goods should sell for the same price across countries after exchange rates are taken into account B. the concept that interest rates across countries will eventually be the same. C. a. the orderly relationship between spot and forward currency exchange rates and the rates of interest between countries. D. a. the natural offsetting relationship provided by costs and revenues in similar market environments A group of European countries have formed a union and created a common currency known as. A. the EU currency. B. the European Union. C. the EMU. D. the Euro What is mean by forward exchange rate? A. is the rate today for exchanging one currency for another for immediate delivery. B. is the rate today for exchanging one currency for another at a specific future date. C. is the rate today for exchanging one currency for another at a specific location on a specific future date. D. is the rate today for exchanging one currency for another at a specific location for immediate delivery What is mean by short exchange rate? A. It is the rate today for exchanging one currency for another for immediate delivery. B. is the rate today for exchanging one currency for another at a specific future date. C. is the rate today for exchanging one currency for another at a specific location on a specific future date. D. is the rate today for exchanging one currency for another at a specific location for immediate delivery 156. What are the forms of assistance that the World Bank provides to its members? A. Technical and financial. B. Political and financial. C. Political and economic. D. Technical and military.

23 23 of 36 8/7/2015 1:30 PM 157. Which organization of the World Bank Group deals with matters related to the development of the poorest countries in the world? A. The International Bank for Reconstruction and Development. B. The International Development Association. C. The International Finance Corporation. D. The Multilateral Investment Agency The system operated by the WTO is known as the. A. multilateral trading system. B. bilateral trading system. C. ratified system D. ungratified system The price at which a market maker is prepared to buy a currency or borrow money is termed as. A. spot rate. B. bid rate. C. ask price. D. forward rate A deposit or borrowing domiciled outside the home country of the currency is called as. A. foreign bond. B. euro bond. C. euro currency. D. domestic bond FOB stands for. A. Freight on board. B. Free on board. C. Flexible on board. D. Future on board An operation in order to protect the domestic currency value of an asset or a liability that is denominated in foreign currency is called as. A. Hedging. B. Hermes. C. Indexation. D. Leading 163. Difference between buying and selling rates in an exchange rate or interest rate quotation is known as. A. Strike price. B. Spread. C. Swap points. D. Spot rate.

24 24 of 36 8/7/2015 1:30 PM 164. The price which one subsidiary or one unit of business charges from another for selling goods or providing services is. A. Transfer price. B. Strike price. C. Spot price. D. Forward rate 165. The bond that does not pay any interest and issued at a price lower than its reimbursement value is called as. A. Zero coupon bonds B. Coupon bond. C. Euro bond. D. Domestic bond Convertibility of a currency is indicated by its. A. Conversion at market rates. B. Conversion at market rates, but subject to quantity restriction by government. C. Conversion at market rate without any quantitative restriction by government D. Conversion at official rate The role if IMF does not include. A. monitoring the proper conduct of the international monetary system B. lending to socially oriented projects. C. financing temporary balance of payments deficits of member countries. D. providing source of liquidity to member countries IMF augments its resources by borrowing under. A. General arrangements to borrow. B. New arrangements to borrow. C. Trust funds. D. All the above The size of quota allocated to a member country determines. A. its drawing power. B. its drawing power and voting rights. C. its drawing power, voting rights and share in allocation of SDRs. D. its drawing power and nomination to Board of Governors With reference to IMF, the term reserve tranche refers to. A. borrowing from IMF that takes the IMFs holding of the currency of the country up to 100% of countrys quota. B. subscription reserved for calling during emergencies. C. the investments in which the reserves of IMF are held.

25 25 of 36 8/7/2015 1:30 PM D. borrowings reserved for very poor countries Loan facilities from IMF targeted at low-income group and available at concessional rate of interest does not include. A. Poverty Reduction And Growth Facility. B. Emergency Assistance. C. Heavily Indebted Poor Counties Initiative. D. Multilateral Agencies SDR stands for A. Special Drawing Rights. B. Specific Drawing Rights C. Special Depository Rules. D. Specific Depository Rules The value of SDR is. A. equivalent to one US dollar. B. based on value of gold. C. average of the value of US dollar and Euro. D. based on basket of five currencies The term World Bank refers to. A. IBRD. B. IDA. C. Both IBRD and IDA. D. IFC The current account of balance of payments includes. A. Unilateral payments. B. Portfolio investments. C. Short term borrowings. D. Long term borrowings The current account of balance of payments does not include. A. Trade in goods. B. Trade in services. C. Income on investments. D. None of the above A country has a negative balance of trade. It means the balance of payments on current account. A. Should also be negative. B. Should be positive. C. May be positive or negative. D. Should be same as balance of trade.

26 26 of 36 8/7/2015 1:30 PM 178. Foreign Exchange Regulation Act was replaced with The Foreign Exchange Management Act in the year. A B C D The WTO Agreement related to investment measures is. A. TRIPS. B. TRIMS. C. GATS. D. TCA The common types of Intellectual property include. A. Copyrights and trademarks. B. Patents and industrial design rights. C. Trade Secrets. D. All of the above The insurance policy that covers exporters against commercial and political risk is. A. General insurance. B. Marine insurance. C. ECGC. D. Fire insurance The penalty for the contravention of foreign trade rules is decided by. A. The Appellate authority. B. The Adjudicating authority. C. The Competing authority. D. The Regional Licensing Authority The export promotion scheme that neutralizes the customs duty on the import content of the export product is. A. DEPB. B. Duty Drawback. C. Duty Exemption. D. Duty Remission Which of the following are international financial considerations faced by both small and large MNEs? A. Currency systems. B. Tax systems. C. Interest rates. D. Exchange rate.

27 27 of 36 8/7/2015 1:30 PM 185. The bond markets are important because. A. they are easily the most widely followed financial markets in the United States. B. they are the markets where foreign exchange rates are determined. C. they are the markets where interest rates are determined. D. they are the markets without risk Most FDI and trade is made by. A. China, Japan and the US. B. The US, the EU, and Japan. C. North America. D. ASEAN countries The EU is the major provider of FDI for. A. Eastern Europe. B. South America. C. developing Asian countries. D. all of these regions Increasing interest rates. A. discourage corporate investments. B. discourage individuals from saving. C. encourage corporate expansion. D. encourage corporate borrowing The exchange rate is the A. total yearly amount of money changed from one countrys currency to another countrys currency. B. total monetary value of exports minus imports. C. amount of countrys currency which can exchanged for one ounce of gold. D. price of one countrys currency in terms of another countrys currency The balance of payments summarizes the transactions that occur during a given time period between. A. the government of one country and the government of another country. B. the national government and local governments in the same country. C. firms of one country and firms throughout the rest of the world. D. individuals of one country and individuals throughout the rest of the world 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.

28 28 of 36 8/7/2015 1:30 PM 192. 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 An increase in the current account deficit will place pressure on the home currency value, other things equal. A. upward. B. downward. C. no. D. upward or downward Which of the following would likely have the least direct influence on a country's current account? A. Inflation. B. National income C. Exchange rates. D. A tax on income earned from foreign stocks The primary component of the current account is the. A. balance of trade. B. balance of money market flows. C. balance of capital market flows. D. unilateral transfers Counter trade represents foreign trade. A. restrictions imposed by the government on imports from another country. B. restrictions imposed by the government on exports sent from the country. C. transactions that force the sales of goods of one country to be linked to the purchase or exchange of goods from the country. D. financing provided to an exporter in exchange for goods provided to the creditor by the exporter Which of the following is not a payment method used for international trade? A. consignment. B. open account. C. factoring. D. draft A banker's acceptance is a draft drawn on and accepted by an. A. bank. B. importer. C. exporter. D. Agent.

29 29 of 36 8/7/2015 1:30 PM 199. Ideally, a firm desires to denominate bonds in a currency that. A. exhibits a low interest rate and is expected to appreciate. B. exhibits a low interest rate and is expected to depreciate. C. exhibits a high interest rate and is expected to depreciate. D. exhibits a high interest rate and is expected to appreciate An argument for MNCs to have a debt-intensive capital structure is. A. they are well diversified. B. foreign government tax rules may change over time. C. exposure to exchange rate fluctuations. D. exposure to fund blockage Financial Management is mainly concerned with. A. arrangement of funds. B. all aspects of acquiring and utilizing financial resources for firms activities C. efficient Management of every business. D. profit maximization 202. In his traditional role the finance manager is responsible for. A. arrange of utilization of funds. B. arrangement of financial resources. C. acquiring capital assets of the organization D. effective management of capital The primary goal of the financial management is. A. to maximize the return. B. to minimize the risk. C. to maximize the wealth of owners. D. to maximize profit Financial decisions involve. A. Investment, financing and dividend decisions. B. Investment sales decisions. C. Financing cash decisions D. Investment dividend decisions management is the important task of the finance manager. A. Debt. B. Equity. C. Profit. D. Cash Finance function is one of the most important functions of management. A. business.

30 30 of 36 8/7/2015 1:30 PM B. marketing. C. financial. D. debt Working capital is also known as capital. A. circulating. B. fluctuating. C. fixed. D. going The gross working capital is a concern concept. A. Going. B. money measurement C. revenue concept. D. cost concept The rate of return on investment with the shortage of working capital. A. falls. B. going. C. constant. D. change Greater the size of a business unit will be the requirements of working capital A. larger. B. lower. C. no change. D. fixed The fixed proportion of working capital should be generally financed from the capital sources. A. fixed. B. variable. C. semi-variable. D. borrowed The volume of sales is influenced by of a firm. A. finance policy B. credit policy C. profit policy. D. fund policy Factoring is a form of financing. A. payable. B. receivables. C. borrowings.

31 31 of 36 8/7/2015 1:30 PM D. debts Inventory management is essential because investments in stock are. A. high. B. low. C. medium. D. fixed The time required to process and execute an order is called. A. allowed time. B. lead time. C. accepted time. D. fixed time 216. Ordering cost is the cost of materials A. selling. B. purchasing. C. stocking. D. financing The policy concerning quarters of profit to be distributed as dividend is termed as _. A. Profit policy. B. Dividend policy. C. Credit policy. D. Reserving policy 218. Translation exposure arises in respect of items translated at. A. Current rate. B. Historical rate. C. Average rate. D. All of the above Translation loss is. A. A loss to the parent company. B. A loss to the subsidiary company. C. A notional loss. D. An actual loss The translation exposure is positive when. A. Exposed assets are lesser than exposed liabilities. B. Exposed liabilities are lesser than exposed assets. C. The exposure results in profit. D. There are no liabilities.

32 32 of 36 8/7/2015 1:30 PM 221. For the purpose of translations, current rate refers to. A. The rate current at the time of transaction. B. The rate prevalent on the date of the balance sheet. C. The rate prevalent on the date of preparation of the balance sheet. D. The spot rate For the purpose of translation exposure, historical rate is the rate prevalent on the date. A. The parent company was established. B. The foreign subsidiary was established. C. The investment in the subsidiary was company.made by the parent D. The asset was acquired or the liability was incurred Exposed assets are those translated at. A. Historical rate. B. Average rate. C. Current rate. D. Current rate or average rate This is not established method of translation. A. Current rate method. B. Monetary/Non-monetary method. C. Temporary method. D. Current/Non-current method A positive exposure will lead to when the currency of the subsidiary company appreciates A. Translation gain. B. Translation loss. C. Exchange gain. D. Exchange loss Translation loss may occur when. A. Exposed assets exceed exposed liabilities and foreign currency appreciates B. Exposed assets exceed exposed liabilities and foreign currency depreciates C. The subsidiary's balance sheet shows a loss. D. The foreign currency depreciates The exchange rate prevailing at a financial reporting date. A. Closing exchange rate. B. Opening exchange rate. C. Fixed exchange rate. D. Fluctuating exchange rate Which exchange rate theory focuses on the inflation exchange rate relationship?

33 33 of 36 8/7/2015 1:30 PM A. Interest rate parity. B. International Fisher Effect. C. Purchasing power parity. D. Traditional Model Agreement to exchange one currency for another at a specified exchange rate and date is. A. Currency swap. B. Swap points. C. Currency put option. D. Currency call option Long-term securities denominated in two currencies is called as. A. Euro bond. B. Dual currency bonds. C. Foreign bonds. D. Euro dollar deposit Foreign exchange transactions involve monetary transactions. A. among residents of the same country. B. between residents of two countries only. C. between residents of two or more countries. D. among residents of at least three countries The market forces influencing the exchange rate are not fully operational under. A. floating exchange rate system B. speculative attack on the market. C. fixed exchange rate system. D. current regulations of IMF 233. According to classification by IMF, the currency system of India falls under. A. managed floating B. independently floating. C. crawling peg. D. pegged to basket of currencies Under fixed exchange rate system, the currency rate in the market is maintained through. A. official intervention. B. rationing of foreign exchange. C. centralizing all foreign exchange operations with central bank of the country D. decentralizing all foreign exchange operations Under fixed exchange rate system, fall in the value of domestic currency due to deficit in balance of payments resulted in.

34 34 of 36 8/7/2015 1:30 PM A. depreciation of the currency. B. devaluation of the currency. C. appreciation of the currency. D. no change in the exchange rate normally Under the original scheme IMF, a member country had to obtain the permission of IMF for. A. any devaluation of its currency. B. any devaluation or revaluation of its currency. C. devaluation of its currency at a time exceeding 10%. D. devaluation of its currency exceeding cumulatively 10% At present the role of IMF in the exchange rate policies of its members is to. A. prohibit floating rate. B. have surveillance and express opinion on policies. C. restrict the exchange fluctuations within a band. D. prohibit fixed rate what does MIGA stands for? A. Multilateral Investment Guarantee Agency B. Multilateral Institutional and Government Agencies C. Mutual Interest Guaranteeing Agencies. D. Mutual Institutional and Government Agencies Guarantee provided by MIGA to private investors covers risk of. A. transfer restriction. B. expropriation. C. breach of contract. D. all the above The activities of ADB include. A. project financing. B. guaranteeing loans. C. both a and b. D. risk management products The Foreign Trade policy was first introduced in the year. A B C D What does CCIE stand for? A. Chief Controller of Imports and Exports B. Central Cottage Industries Exports.

35 35 of 36 8/7/2015 1:30 PM C. Control on Cotton Imports and Exports. D. Commissioner of Central Imports and Exports 243. Who will issue Bill of Lading? A. captain of the vessel. B. shipping company. C. customs authorities. D. consignor The document used in the operation of tramp vessel is: A. Charter party. B. Bill of Lading C. Bill of Entry. D. Bill of exchange The cash subsidy scheme designed to compensate the exporters for rebated indirect taxes is. A. Duty drawback. B. Duty Exemption. C. Duty Remission. D. Cash Compensatory Support The area where the goods are permitted to be imported and re-exported without any processing in the same form is called. A. Export Processing Zone. B. Free Trade Zone. C. Special Economic Zone. D. Agri Export Zone The first Free Trade Zone in India is. A. Santa Cruz. B. Kandla. C. Noida. D. Falta The components of Balance of Payment include. A. Current and Capital Account. B. Current account and official reserves C. Capital Account and Official reserves. D. Current account, capital account and official reserves 249. The total value of the products and services marketed by a nation is called. A. Gross Domestic Product. B. Gross National Product. C. National Income.

36 36 of 36 8/7/2015 1:30 PM D. Per capita income The legal settlement of international trade disputes is. A. Negotiation. B. Arbitration. C. Litigation. D. Conciliation. Staff Name Deepa.J.