wayground logo

Free Printable Worksheets

NEW

Font size

S
M
L
XL
Worksheets

IF Internal Component Quiz

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

The risk of being unable to sell your investment at a fair price and get your money out when you want to, is called ____________

a)

Concentration risk

b)

Liquidity risk

c)

Inflation risk

d)

Credit risk

2.

IDR stands for ____________

a)

International Depository Receipt

b)

International Deposit Receipt

c)

Indian Deposit Receipt

d)

Indian Depository Receipt

3.

_____________ equity markets are an important platform for global finance

a)

Foreign

b)

Forex

c)

Euro

d)

International

4.

LIBOR stands for ___________ Interbank Offered Rate.

a)

Loan

b)

Landmark

c)

London

d)

Liberia

5.

Spot stands for _____________ payment options trading in foreign exchange terminology

a)

Double

b)

Single

c)

Straight

d)

Future

6.

International _________ market mainly deals in Eurocurrency deposits, Euro credits, Euro notes, Euro commercial paper etc.

a)

Money

b)

Capital

c)

Bond

d)

Share

7.

The basic function of foreign exchange market is to facilitate the __________ of one currency into another

a)

Conversion

b)

Conservation

c)

Concentration

d)

Consolation

8.

Every country was required to establish a central bank to function as the _________ of the country’s monetary gold reserve

a)

Supreme

b)

Superior

c)

Custodian

d)

Owner

9.

Fixed exchange rate system is also known as __________ exchange rate

a)

Pegged

b)

Flexible

c)

Brett

d)

Fluctuating

10.

In Bretton Woods System, the countries can also earn ____________ on their dollar reserves

a)

Profit

b)

Surplus

c)

Interest

d)

Commission

11.

The _____________ is also called the IMF’s fixed exchange rate system

a)

Gold Standards System

b)

Bretton Woods System

c)

Gold System

d)

Silver Standard System

12.

__________ account is a summary statement of transactions in a foreign exchange in a year

a)

Cash Flow

b)

Trading

c)

Balance of payment

d)

Profit and Loss

13.

From the following, which is not a feature of Balance of payment?

a)

Systematic record

b)

All Transactions

c)

Single entry

d)

Double entry

14.

Trade restrictions is called as ___________

a)

Trade stopper

b)

Trade barrier

c)

Trade damage

d)

Trade booster

15.

__________ refers to the price of one currency against another currency

a)

Barter

b)

Exchange rate

c)

Purchase rate

d)

Sale rate

16.

When all components of the BoP accounts are included, they must sump upto ---------- -------- with no overall surplus or deficit

a)

one

b)

two

c)

three

d)

zero

17.

The ---------------- account in BoP marks the inflow and outflow of goods and services into a country

a)

capital

b)

current

c)

reserve

d)

surplus

18.

The International Monetary System consists of ------------------

a)

exchange rate arrangements

b)

capital flows

c)

a collection of institutions, rules and conventions that govern its operations

d)

all of the above

19.

Spread = Ask - -------------------------

a)

forward rate

b)

spot rate

c)

bid

d)

futures

20.

A foreign exchange -------------- is the price of a foreign currency.

a)

rate

b)

market

c)

management

d)

finance

21.

The most common way that professional dealers and brokers state foreign exchange quotations and the way they appear on all computer trading screens worldwide is called ------- ----- terms.

a)

American

b)

European

c)

Indian

d)

Singaporean

22.

IRP theory stresses on the fact that the size of the forward premium or discount on a foreign currency is ---------------- to the difference between the spot and forward interest rates of the countries in comparison.

a)

in sync with

b)

not equal

c)

equal

d)

not in sync with

23.

There are ----------------- types of ADRs.

a)

2

b)

3

c)

4

d)

5

24.

-----------------means avoidance of a foreign exchange risk.

a)

arbitrage

b)

hedging

c)

trading

d)

speculating

25.

Money market ------------ fixes future rate.

a)

options

b)

hedges

c)

contracts

d)

swaps