Study International Financial Management Online MCQ Practice Set for your academic course and prepare for your exam and online assignments. You can give online FREE Quiz and test your knowledge on OMCQ portal.
After Practice of MCQ, you can give Online Quiz Test of International Financial Management MCQs and check your knowledge about your study.
Question: A banker’s acceptance is a draft drawn on and accepted by a(n)___
- A. bank
- B. importer
- C. exporter
- D. none of the above
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A bill of exchange includes.
- A. An order to pay
- B. A request to pay
- C. A promise to pay
- D. All the above
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A bill of exchange requesting the bank to pay the face amount upon presentation of documents is a:
- A. banker’s acceptance
- B. time draft
- C. letter of credit
- D. sight draft
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A call option exists on British pounds with an exercise price of $1.60, a 90-day expiration date, and a premium of $.03 per unit. A put option exists on British pounds with an exercise price of $1.60, a 90-day expiration date, and a premium of $.02 per unit. You plan to purchase options to cover your future receivables of 700,000 pounds in 90 days. You will exercise the option in 90 days (if at all). You expect the spot rate of the pound to be $1.57 in 90 days. Determine the amount of dollars to be received, after deducting payment for the option premium. Choices:
- A. $1,169,000
- B. $1,099,000
- C. $1,106,000
- D. $1,143,100
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A country with high unemployment could best increase its employment by:
- A. encouraging foreign firms to establish subsidiaries that produce the same products local firms produce
- B. encouraging foreign firms to establish licensing arrangements for products local firms produce
- C. encouraging foreign firms to establish subsidiaries that produce products local firms do not produce
- D. none of the above would reduce employment
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A eurocurrency is:
- A. a bank deposit held in a country that does not issue that currency in which the deposit is denominated
- B. the currency of European Economic and Monetary Union – called the ‘euro’ for short
- C. a bank deposit in a non-European currency held in Europe
- D. a bank deposit in a European currency held outside of Europe. the currency of the European Union
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A firm considers an exporting project and will invoice the exports in pounds. The expected cash flows in pounds would be more difficult if the currency of the foreign country is___
- A. fixed
- B. volatile
- C. stable
- D. none of the above, as the firm is not exposed
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A firm may incorporate a country risk rating into the capital budgeting analysis by:
- A. adjusting the NPV upward if the country risk rating has fallen (implying increased risk) below a benchmark level
- B. adjusting the discount rate upward as the country risk rating decreases (implying increased risk)
- C. A and B
- D. none of the above
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A firm that buys foreign exchange in order to take advantage of higher foreign interestrates is
- A. speculating
- B. demonstrating purchasing power parity
- C. engaging in interest rate arbitrage
- D. responding to fluctuations in the business cycle
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A firms expects to receive $20,000 from domestic operations and 20,000 British pounds (£ ) from a business in England. If the pound’s value is $1.25, the expected total dollar cash flows are:
- A. $40,000
- B. $36,000
- C. $45,000
- D. $20,000
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A foreign project generates a negative cash flow in year 1 and positive cash flows in years 2 through 5. The NPV for this project will be higher if the foreign currency___in year 1 and___in years 2 though 5.
- A. depreciates; depreciates
- B. appreciates; appreciates
- C. depreciates; appreciates
- D. appreciates; depreciates
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A French-based MNC has just established a subsidiary in Algeria. Shortly after the plant was built, the MNC determines that its exchange rate forecasts, which had previously indicated a slight appreciation in the Algerian dinar were probably false. Instead of a slight appreciation, the MNC now expects that the dinar will depreciate substantially due to political turmoil in Algeria. This new development would likely cause the MNC to___its estimate of the previously computed net present value.
- A. lower
- B. increase
- C. lower, but not necessarily if the MNC invests enough in Algeria to offset the decrease in NPV
- D. increase, but not necessarily if the MNC reduces its investment in Algeria by an offsetting amount
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A General Agreement on Tariffs and Trade (GATT) accord in 1993 called for:
- A. increased trade restrictions outside of North America
- B. lower trade restrictions around the world
- C. uniform environmental standards around the wor
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A macro-assessment of country risk:
- A. is adjusted for the particular business of the firm involved
- B. excludes all aspects relevant to a particular firm or project
- C. A and B
- D. none of the above
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A perfect hedge (full coverage) on translation exposure can usually be achieved when:
- A. using the money market hedge
- B. using the forward hedge
- C. using the futures hedge
- D. none of the above, since a perfect hedge is nearly impossible
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A previously undertaken project in a foreign country may no longer be feasible because:
- A. the MNC is unable to raise sufficient funds in order to undertake the project
- B. the MNC’s cost of capital has decreased
- C. the host government has increased its tax rates substantially
- D. exchange rate projections changed from a depreciation to an appreciation of the foreign currency
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A primary result of the Bretton Woods Agreement was:
- A. the establishment of the European Monetary System (EMS)
- B. establishing specific rules for when tariffs and quotas could be imposed by governments
- C. establishing that exchange rates of most major currencies were to be allowed to fluctuate 1% above or below their initially set values
- D. establishing that exchange rates of most major currencies were to be allowed to fluctuate freely without boundaries (although the central banks did have the right to intervene when necessary)
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A project may be regarded as high risk project when
- A. It has smaller variance of outcome but a high initial investment
- B. It has larger variance of outcome and high initial investment
- C. It has smaller variance of outcome and a low initial investment
- D. It has larger variance of outcome and low initial investment
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A share of the ADR of a Dutch firm represents one share of that firm’s stock that is traded on a Dutch stock exchange. The share price of the firm was 15 euros when the Dutch market closed. As the U.S. market opens, the euro is worth $1.10. Thus, the price of the ADR should be___
- A. $13.64
- B. $15.00
- C. $16.50
- D. 16.50 euros
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Question: A UK corporation has purchased currency call options to hedge a 70,000 dollar payable. The premium is £ 0.015 and the exercise price of the option is £ 0.54. If the spot rate at the time of maturity is £ 0.59, what is the total amount paid by the corporation if it acts rationally?
- A. £ 36,750
- B. £ 1,050
- C. £ 37,800
- D. £ 38,850
Correct Answer
View Answer
Give online quiz test
Yes! You can also try International Financial Management FREE MCQ Quiz and improve your speed and knowledge
Important note for exam preparation: Must try Online MCQ Quiz Test after practice these MCQ, so you can check your knowledge and improve efficiency. You can get link from above mention for these subjects.