A. Forward contract
B. Future contract
C. Options
D. Every transaction
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International Financial Management MCQs
International Financial Management Quiz Outline
An agreement which entitle you right but not obligation to lock an exchange rate against premium, is called____?
Using future contract you can hedge_____?
A. $100,000 or multiples
B. $50,000 or multiples
C. $25,000 or multiples
D. Any amount
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Using forward contract you can hedge_____?
A. $100,000 or multiples
B. $50,000 or multiples
C. $25,000 or multiples
D. Any amount
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Which of the following is a Over the counter and customized derivative?
A. Forward contract
B. Future contract
C. Spot transaction
D. Every transaction
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Which of the following is an exchange traded and standardized derivative?
A. Forward contract
B. Future contract
C. Spot transaction
D. Every transaction
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Exchange rate market is open_____ and 5 days a week?
A. 12 hours a day
B. 24 hours a day
C. 8 hours a day
D. 16 hours a day
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If the direct rate is 1.35$/€ then indirect rate will be____?
A. 0.54 €/$
B. 0.74 €/$
C. 1.11 €/$
D. 5.31 €/$
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Buying rate is 162 Rs./$ and selling rate is 164 Rs/$ then the spread is ____?
A. 0.002Rs/$
B. 0.02Rs/$
C. 0.2 Rs/$
D. 2 Rs/$
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For a Chinese citizen Rs. 164/$ is a _____?
A. Direct rate
B. Indirect Rate
C. Cross rate
D. Functional rate
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For an American citizen Rs. 164/$ is a ____?
A. Direct rate
B. Indirect Rate
C. Cross rate
D. Functional rate
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