WorksheetsFIN542 CHAPTER 1 Intro to IFM
Total questions: 16
Worksheet time: 52mins
Which of the following can be considered as a political risk?
Inflation rate
Recession
Riot
Tax
Which of the following is/are the risk(s) that an international business may be exposed to?
Political risk
Foreign Exchange Risk
Ethical Risk
All of it
The mainly general type of Direct Foreign Investment (DFI) is
Franchising
Patent
International trade
Establishment of new subsidiaries
Balance of payment is measured as
Difference between visible items of exports and imports
Difference between invisible items of exports and imports
Difference between external and internal flow of gold
Difference between all receipts and payment of international transaction
Trade balance is measured as
Difference between import and export of goods
Difference between import and export of services
Difference between import and export of capital
Difference between all exports and all imports
Current account records transactions relating to
Export and import of goods
Scholarship and foreign aid
Legal fees
All of these
Which of the following are not included in the trade balance?
Payment of interest and dividend
Expenditure by tourists
Borrowing from rest of the world
All of these
Which of the following items are not a part ofcapital account?
loans
Banking capital transactions
Unilateral transactions
Portfolio investment
Borrowing from abroad is recorded in services balance . True or false?
True
False
which one of the following items is an intangible item in balance of payments statement?
Export of food grain
import of crude oil
banking services provided in other countries
import of steel by steel industry
Trade deficit refers to the situation where
Export of goods is more than the import of goods
Export of goods is less than the import of goods
Export of services is more than the import of services
Export of services is less than the import of services
Current Account records all payments to the rest of the world as _____ and all receipts from rest of the world as______
Credit,
Debit
Debit,
Credit
Debit,
Debit
Credit
Credit
Decrease in foreign exchange reserve will be recorded on the
Credit side of BoP
Debit side of BoP
Not added to BoP
Both the sides
