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WorksheetsTCQT
Total questions: 74
Worksheet time: 37mins
3. The lower the market exchange rate at the maturity is, the higher the profit of Short Forward holder is.
True
False
4. The grant element of an ODA loan accounts for concessional terms related to:
A. Interest rate
B. Maturity
C. Grace period
D. All of the above options
5. The higher the market exchange rate at the maturity is, the higher the profit of Short Forward holder is.
True
False
6. According to Vietnamese regulations, a concessional loan which has the grant element of 30% is called..?
A. A concessional loan without binding provisions
B. A concessional loan with binding provisions
C. An ODA with binding provisions
D. An ODA without binding provisions
7. If market exchange rate at maturity is lower than the breakeven point, the customer shouldn't exercise the Long Call.
A. True
B. False
8. The higher the market exchange rate at the maturity is, the lower the profit of Short Forward holder is.
A. True
B. False
9. If GBP/EUR tends to increase during the international stock investment, the investor should invest into stocks dominated in EUR.
A. True
B. False
10. If the borrowing currency increases against payment currency, the real interest rate would be positively affected.
A. True
B. False
11. The higher the market exchange rate at the maturity is, the lower the profit of Long Forward holder is.
A. True
B. False
12. An increase in the supply of foreign currency, combining with a decrease in the demand of foreign currency, will cause the exchange rate between foreign currency and domestic currency to decrease.
A. True
B. False
13. The lower the market exchange rate at maturity is, the lower the profit of Long Forward holder is.
A. True
B. False
14. Which of the following forms of foreign direct investment (FDI) does not lead to the establishment of a new legal entity?
A. Joint venture
B. Business cooperation contract
C. 100% Foreign-owned enterprise
D. All are correct
15. A decrease in the supply of foreign currency, combining with an increase in the demand of foreign currency, will cause the exchange rate between foreign currency and domestic currency to increase.
A. True
B. False
16. A decrease in the supply of foreign currency, combining with a decrease in the demand of foreign currency, will cause the exchange rate between foreign currency and domestic currency to decrease.
A. True
B. False
17. An increase in the supply of foreign currency, combining with an increase in the demand of foreign currency, will cause the exchange rate between foreign currency and domestic currency to increase.
A. True
B. False
18. Rate of return on international stock will be positively affected if the value of transaction currency tends to decrease against that of investment currency.
A. True
B. False
19. The effective financing rate is not affected by which of the following factors?
A. Frequency of interest repayments
B. Inflation rate
C. Exchange rate among currencies
D. All above factors will affect the effective financing rate
21. Assume ceteris paribus, a decrease in the supply of foreign currency, combining with an increase in the demand of foreign currency, will cause the exchange rate between foreign currency and domestic currency to:
A. Decrease
B. Remain unchanged
C. Increase
D. Inconclusive
22. Which of the following is one of the drivers that attracts the foreign indirect investment (FIl) flowing into a country? Assumed the other factors remain unchanged.
A. High income tax rates
B. High interest rates
C. High volatility of exchange rate
23. Which of the following is not a characteristic of foreign indirect investments (FIl)?
A. Short-term investment
B. Do not directly participate in management
C. Investment in physical assets
D. Tends to be speculative
24. Which of the following is not a characteristic of foreign direct investments (FDI)?
A. Long-term investmen
B. Entry and exit are relatively
C. Directly participates in management
D. Leads to technology transfer, access to markets and management inputs
26. Which of the following is not a characteristic of foreign indirect investments (FIl)?
A. Short-term investment
B. Entry and exit are relatively easy
C. Investment in financial assets
D. Direct impact on employment of labor and wages
27. Which of the following is not a characteristic of foreign direct investments (FDI)?
A. Long-term investment
B. Entry and exit are relatively difficult
C. Results in only capital inflows
D. Aim is to increase enterprise capacity or productivity or change management control
28. Rate of return on international stock will be positively affected if the value of investment currency tends to increase against that of transaction currency.
A. True
B. False
30. Rate of return on international stock will be negatively affected if the value of investment currency tends to decrease against that of transaction currency.
A. True
B. False
32. Rate of return on international stock will be positively affected if the value of transaction currency tends to decrease against that of investment currency.
A. True
B. False
35. Authorized state agencies can detect the transfer pricing activities in FDI enterprises by:
A. Comparing the transaction prices that FDI enterprises apply with those of affiliated enterprises and the market price
B. FDI enterprises that had incurred losses for many years
C. Comparing the transaction price that FDI enterprises apply to non-affiliated enterprises with the market price
D. All are wrong
36. A multinational corporation (MNC) has two affiliates which locate in different country, Country A and Country B. The Affiliate in country A sells goods to the affiliate in country B. Which of the following statements is correct?
A. If the corporate tax rate in country A is higher than country B, the transfer price should be as high as possible.
B. If the corporate tax rate in country A is higher than country B, the transfer price should be as low as possible.
C. If the corporate tax rate in country A is equal to country B, any levels of transfer price will also increase the profits of entire MNC.
D. If the corporate tax rate in country A is equal to country B, the profits of entire MNC will decrease if transfer pricing is implemented.
37. A multinational corporation (MNC) has two affiliates which locate in different country, Country A and Country B. The Affiliate in country A sells goods to the affiliate in country B. Which of the following statements is correct?
A. If the corporate tax rate in country A is lower than country B, the transfer price should be as high as possible.
B. If the corporate tax rate in country A is lower than country B, the transfer price should be as low as possible.
C. If the corporate tax rate in country A is equal to country B, any levels of transfer price will also increase the profits of entire MNC.
D. If the corporate tax rate in country A is equal to country B, the profits of entire MNC will decrease if transfer pricing is implemented.
38. Advantages of foreign loans do not include which of the following statements?
A. The borrowers can access to a variety of borrowing options.
B. The borrowers can borrow the exact foreign currency that they need for purposes.
C. The borrowing is less risky.
D. The borrowers can access to huge sources of capital.
39. According to Vietnamese regulations, the foreign debt of public sector does not include:
A. Foreign debt which is borrowed by the Vietnamese Government
B. Foreign debt which is guaranteed by the Vietnamese Government
C. Foreign debt which is borrowed by the municipal or local governments
D. Foreign debt which is borrowed by state-owned enterprises without government's guarantee
41. Which of the following is not a characteristic of international finance?
A. Exchange risk and political risk
B. Market imperfections
C. The international environment opens up many opportunities
D. Not influenced by the political and economic situation of each country
42. If market exchange rate at maturity is lower than the breakeven point, the customer shouldn't exercise the Long Call.
A. True
B. False
43. Assume ceteris paribus, a decrease in the supply of foreign currency, combining with a decrease in the demand of foreign currency, will cause the exchange rate between foreign currency and domestic currency to:
A. Decrease
B. Remain unchanged
C. Increase
D. Inconclusive
44. The higher the market exchange rate at maturity is, the profit of Long Put holder tends to increase.
A. True
B. False
45. According to Vietnamese regulations, a non-binding concessional loan is called ODA (Official Development Assistance) it the grant element of the loan is:
A. At most 25%
B. At most 35%
C. At least 35%
D. At least 25%
46. Which of the following factors is not related to risks in international finance activities:
A. Increasing export turnover of goods and services among countries
B. Political instabilities of countries or regions
C. Fluctuations of exchange rate between major currencies
D. Developing agriculture and rural areas towards industrialization and modernization
47. Assume ceteris paribus, an increase in the supply of foreign currency, combining with an increase in the demand of foreign currency, will cause the exchange rate between foreign currency and domestic currency to:
A. Decrease
B. Remain unchanged
C. Increase
D. Inconclusive
48. The higher the market exchange rate at the maturity is, the higher the profit of Short Forward holder is.
A. True
B. False
49. Assume ceteris paribus, an increase in the supply of foreign currency, combining with a decrease in the demand of foreign currency, will cause the exchange rate between foreign currency and domestic currency to:
A. Decrease
B. Remain unchanged
C. Increase
D. Inconclusive
53. According to Vietnamese regulations, a binding concessional loan is called ODA (Official Development Assistance) it the grant element of the loan is:
A. At least 20%
B. At least 25%
C. At least 30%
D. At least 35%
54. According to Vietnamese regulations, a non-binding concessional loan is called ODA (Official Development Assistance) it the grant element of the loan is:
A. At most 25%
B. At most 35%
C. At least 35%
D. At least 25%
58. What does the direct quotation of exchange rate indicate?
A. How many units of currency needed to exchange for 1 USD
B. How many USD needed to exchange for 1 unit of foreign currency
C. How many units of foreign currency needed to exchange for 1 unit of domestic currency
D. How many units of domestic currency needed to exchange for 1 unit of foreign currency
61. Assume ceteris paribus, if exchange rate increases, FDI attraction will increase.
A. True (Tỷ giá tăng, VND mất giá, USD tăng giá, có lợi cho NĐT nước ngoài → FDI tăng )
B. False
62. Assume ceteris paribus, exchange rate will decrease when:
A. Foreign loan repayments increase.
B. Foreign loan repayments decrease. (Đồng tiền giảm giá khi Demand xuống, có nghĩa là Repayments decrease)
63. The depreciation of Japanese Yen will be beneficial for
A. Japanese businesses when making investments in other countries
B. Japanese businesses when exporting goods to other countries
C. Japanese businesses when importing goods from other countries
D. Japanese people when traveling to other countries
64. When the inflation rate of the domestic currency is higher than that of foreign currency, how does the exchange rate change? Supposed that the country uses direct quotation.
A. Increase (Inflation của domestic cao hơn foreign, có nghĩa là đồng domestic mất giá nhiều hơn → tỷ giá tăng)
B. Decrease
C. Remain unchanged
D. There is no correct response
65. During times of economic uncertainty or political instability, people often turn to foreign currencies as a safe harbor asset. Then, the exchange rate tends to:
A. Stable
B. Increase (Cầu với ngoại tệ tăng)
C. Decrease
D. All are correct
66. The maturity of a forward contract is:
A. 90 days
B. 60 days
C. 1 year
D. Can be any terms, depending on the agreement of the parties to the contract
68. If THB depreciates against VND, it would be beneficial for:
A. Thai businesses when making investments in Vietnam
B. Vietnamese businesses when exporting goods to Thailand
C. Thai businesses when importing goods from Vietnam
D. Vietnamese people when traveling to Thailand (Bạt (Baht) Thái giảm, VND lên, có lợi cho người VN)
69. Which of the following statements is most likely correct?
A. Currency forward contracts are not contractual obligation.
B. Currency forward contracts are standardized in terms of maturity.
C.Currency forward contracts are not traded on the secondary market
D. Currency forward contracts are derivative contracts then they are traded on the secondary market.
68. The official exchange rate is given by:
A. Commercial bank
B. Central bank
C. Government
D. All are correct
69. Currently, the exchange is listing as follow: EUR/USD = 1.3223/30; F_1m (EUR/USD) = 1.3535/40; F_2m (EUR/USD) = 1.4004/40; F_3m (EUR/USD) = 1.4101/04. Which answer is most likely correct?
A. The EUR will definitely appreciate against the dollar in the next 6 months
B. The EUR will definitely depreciate against the dollar in the next 6 months
C. The EUR is traded at a forward premium
D. The EUR is traded at a forward discount
70. What does the indirect quotation of exchange rate indicate?
A. How many units of currency needed to exchange for 1 USD
B. How many USD needed to exchange for 1 unit of foreign currency
C. How many units of foreign currency needed to exchange for 1 unit of domestic currency
D. How many units of domestic currency needed to exchange for 1 unit of foreign currency
73. Assume ceteris paribus, according to the interest rate parity theory, if the interest rate of the domestic currency is higher than that of the foreign currency, the exchange rate will:
A. Increase
B. Decrease (Lãi suất của VND cao hơn, cầu VND tăng, Cầu của USD giảm, tỷ giá giảm)
74. Assume ceteris paribus, exchange rate will increase when:
A. Foreign loan repayments increase.
B. Foreign loan repayments decrease.
75. The bid rate is:
A. Is the exchange rate at which the bank is willing to buy the term currency
B. Is the exchange rate at which customers are willing to buy the term currency
C. Is the exchange rate at which the bank is willing to buy the commodity currency
D. Is the exchange rate at which customers are willing to buy the commodity currency
78. Under the direct quotation of exchange rate, the unit of local currency is fixed while the amount of foreign currency is variable.
A. True
B. False (1 đồng foreign = … đồng domestic)
79. Assume ceteris paribus, exchange rate will decrease when: (Không có chữ “Repayments” → (Supply) → Foreign loans increase Exchange rate giảm khi supply tăng )
A. Foreign loans increase.
B. Foreign loans decrease.
80. If USD depreciates sharply, then:
(cùng 1000USD nhưng nhập được nhiều hàng hóa hơn) USD mất giá, VND tăng giá)
A. Vietnamese businesses benefit when exporting to the US
B. American businesses benefit when investing in Vietnam
C. Vietnamese businesses benefit when imparting goods from the US
D. Americans benefit when traveling to Vietnam
81. Based on the maturity, the international financial market can be categorized as:
(Trong International monetary market có FX và Eurocurrency Trong International capital market có Security và Credit)
A. International monetary market and international capital market
B. International security market and international capital market
C. International monetary market and international security market
D. International monetary market, international security market and international capital market
82. Which of the following investments does not belong to the form of FDI?
A. Business cooperation contracts and joint venture enterprises
B. Investments in government bonds of host countries
C. 100% foreign capital enterprises
D. Build-Operate-Transfer (BOT), Build-Transfer (BT)....
83. The foreign exchange market is the marketplace where...
A. Trading activities of shares and bonds denominated in foreign currencies take place
B. Trading activities of financial instruments denominated in foreign currency take place
C. Trading activities of precious metals take place
D. Trading activities of different currencies take place
86. The ask rate is:
A. Is the exchange rate at which the bank is willing to sell the term currency
B. Is the exchange rate at which customers are willing to sell the term currency
C. Is the exchange rate at which the bank is willing to sell the commodity currency
D. Is the exchange rate at which customers are willing to sell the commodity currency
89. Under long forward contract, the buyer will choose not to exercise at maturity if the exchange rate moves unfavorably.
(Forward không có quyền thực hiện hay không thực hiện, chỉ có Option mới có quyền thực hiện hay không thực hiện0
A. True
B. False
90. Assume ceteris paribus, exchange rate will increase when:
(Tỷ giá tăng, (Supply) giảm, Foreign loans giảm)
A. Foreign loans increases.
B. Foreign loans decreases.
91. The price of the GBP dropped sharply then:
A. British businesses benefit from exporting abroad
B. British businesses benefit from investing abroad
C. British people benefit from traveling abroad
D. British businesses benefit from importing goods from abroad
92. Currency devaluation has the effects of?
A. Beneficial for the people of devaluing country to go travel abroad
B. Promoting the exports of goods
C. Keeping the exchange rates stable
D. Beneficial for the importers of goods in devaluing country
93. Under an option contract between a customer and a bank, the customer (also the option buyer) has to pay option premium:
A. To the broker, whether the option is exercised or not
B. To the bank that selling the option, only if the customer exercises the option
C. To the broker, only if the customer exercises the option
D. To the bank, whether the option is exercised or not
94. Which of the following is not a financial instrument of capital market?
A. Stocks
B. Bonds
C. Commercial papers (là công cụ ngắn hạn dưới 1 năm)
D. Mortgage loans
Fill in the blank: "In international investment, investment capital flows are transferred..."
A. From a national economy to another ones
B. From investors to other investors
C. Within the investor's economy
D. Domestically according to investment contract
The following statement is True or False?" International relation is the only condition for establishment of International Finance"
True
False
The foreign exchange transactions that are made for immediate delivery will apply which of the following exchange rate?
A.Forward exchange rate
B. Spot exchange rate
C.Exercise price under option contract
Compared to import tariffs, import quotas benefit:
A. Domestic consumers of the product
B. Special interests for those who receive import licenses
C. Generate revenue for the state budget
D. Domestic producers of the product
