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WorksheetsIF Internal Component Quiz
Total questions: 25
Worksheet time: 13mins
The risk of being unable to sell your investment at a fair price and get your money out when you want to, is called ____________
Concentration risk
Liquidity risk
Inflation risk
Credit risk
IDR stands for ____________
International Depository Receipt
International Deposit Receipt
Indian Deposit Receipt
Indian Depository Receipt
_____________ equity markets are an important platform for global finance
Foreign
Forex
Euro
International
LIBOR stands for ___________ Interbank Offered Rate.
Loan
Landmark
London
Liberia
Spot stands for _____________ payment options trading in foreign exchange terminology
Double
Single
Straight
Future
International _________ market mainly deals in Eurocurrency deposits, Euro credits, Euro notes, Euro commercial paper etc.
Money
Capital
Bond
Share
The basic function of foreign exchange market is to facilitate the __________ of one currency into another
Conversion
Conservation
Concentration
Consolation
Every country was required to establish a central bank to function as the _________ of the country’s monetary gold reserve
Supreme
Superior
Custodian
Owner
Fixed exchange rate system is also known as __________ exchange rate
Pegged
Flexible
Brett
Fluctuating
In Bretton Woods System, the countries can also earn ____________ on their dollar reserves
Profit
Surplus
Interest
Commission
The _____________ is also called the IMF’s fixed exchange rate system
Gold Standards System
Bretton Woods System
Gold System
Silver Standard System
__________ account is a summary statement of transactions in a foreign exchange in a year
Cash Flow
Trading
Balance of payment
Profit and Loss
From the following, which is not a feature of Balance of payment?
Systematic record
All Transactions
Single entry
Double entry
Trade restrictions is called as ___________
Trade stopper
Trade barrier
Trade damage
Trade booster
__________ refers to the price of one currency against another currency
Barter
Exchange rate
Purchase rate
Sale rate
When all components of the BoP accounts are included, they must sump upto ---------- -------- with no overall surplus or deficit
one
two
three
zero
The ---------------- account in BoP marks the inflow and outflow of goods and services into a country
capital
current
reserve
surplus
The International Monetary System consists of ------------------
exchange rate arrangements
capital flows
a collection of institutions, rules and conventions that govern its operations
all of the above
Spread = Ask - -------------------------
forward rate
spot rate
bid
futures
A foreign exchange -------------- is the price of a foreign currency.
rate
market
management
finance
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.
American
European
Indian
Singaporean
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.
in sync with
not equal
equal
not in sync with
There are ----------------- types of ADRs.
2
3
4
5
-----------------means avoidance of a foreign exchange risk.
arbitrage
hedging
trading
speculating
Money market ------------ fixes future rate.
options
hedges
contracts
swaps
