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Worksheetsinternational financial management
Total questions: 20
Worksheet time: 11mins
Name
Class
Date
1.
Q14. A floating exchange rate
a)
A. determined by the national governments involved
b)
B.is determined by the actions of central banks
c)
C.is allowed to vary according to market forces
d)
D.remains extremely stable over long periods of time
2.
Q12. The impact of Foreign exchange rate on a firm is called as
a)
A. Business risk
b)
B.Translation exposure
c)
C.Transaction exposure
d)
D. Operating Exposure
3.
Q8. Currency appreciation occurs when:
a)
A. the value of one currency rises relative to another currency.
b)
B.the value of all currencies rise relative to gold.
c)
C.the value of one currency falls relative to another currency.
d)
D.the value of all currencies fall relative to gold.
4.
Q7. A source of supply of foreign exchange is ________
a)
A. Imports
b)
B. Exports
c)
C. Donations
d)
D. Gifts
5.
Q6. The responsibility for the administration of FEMA is vested with ________
a)
A. Central government
b)
B. State government
c)
C. RBI
d)
D. National banks
6.
Q5. _____ is not a characteristic of speculation.
a)
A. Hedging
b)
B. Risk taking
c)
C. Profit motive
d)
D. Exchange rate fluctuation
7.
Q4. India is facing continuous deficit in its balance of payments in the foreign exchange market rupee is expected to _______
a)
A. Appreciate
b)
B. Depreciate
c)
C. Show no specific tendency
d)
D. All of the above
8.
Q3. India’s foreign exchange rate system is _______
a)
A. Fixed target of band
b)
B. Free float
c)
C. Fixed system
d)
D. Managed float
9.
Q2. Due to globalization, the financial management function has become _________.
a)
A. Less demanding and complex
b)
B. More demanding and complex
c)
C. Less important and complex
d)
D. Outdated and complex
10.
Q1. ________ maintains the foreign exchange reserves in India?
a)
A. State Bank of India
b)
B. Reserve Bank of India
c)
C. Finance Ministry of India
d)
D. EXIM India
11.
Financial management is mainly concerned with
a)
All aspects of acquiring and utilizing financial resources for firms activities
b)
Arrangement of funds
c)
Efficient Management of every business
d)
Profit maximisation
12.
The primary goal of financial management is
a)
to maximize the return
b)
to minimize the risk
c)
to maximize wealth of owners
d)
to maximize profit
13.
Market value of shares are decided by
a)
the respective companies
b)
the investment market
c)
the government
d)
the shareholders
14.
The objective of wealth maximization takes into account
a)
Amount of returns expected
b)
Timing of anticipated returns
c)
Risk associated with uncertainty of returns
d)
All of the above
15.
Which financial decision help a businessman in opening a new branch of its business.
a)
Financing decision
b)
Dividend decision
c)
Investment decision
d)
None of the above
16.
Finance functions are
a)
Planning for funds
b)
Raising of funds
c)
Allocation of funds
d)
All of the above
17.
Assets and liabilities are exposed to currency risk when their values can change with unexpected changes in currency values.
a)
True
b)
False
18.
Because of globalization in the world’s markets, a multinational financial manager is more likely than a domestic financial manager to specialize in finance to the exclusion of other fields of business.
a)
True
b)
False
19.
Risk exists whenever actual outcomes can differ from expected outcomes.
a)
True
b)
False
20.
to measures the value of one currency in units of another currency we can use
a)
inflation rate
b)
exchange rate
c)
income level
d)
interest rate
e)
domestic demand
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